A.M. Best Assigns Ratings to Fair American Select Insurance Company
OLDWICK, N.J. -- July 11, 2013
A.M. Best Co. has assigned a financial strength rating of A (Excellent) and
issuer credit rating of “a+” to Fair American Select Insurance Company (FAIRCO
Select) (Delaware). The outlook assigned to both ratings is stable.
The assigned ratings are based on FAIRCO Select’s recently executed quota
share agreement with its parent company, Transatlantic Reinsurance Company
(TransRe) (New York, NY). FAIRCO Select will cede 90% of all ongoing business
to TransRe. FAIRCO Select and TransRe are both ultimately owned by Alleghany
FAIRCO Select will serve as a surplus lines carrier that will provide coverage
alongside its immediate parent, Fair American Insurance and Reinsurance
Company. The initial focus of FAIRCO Select will be on medical malpractice for
psychiatrists, but going forward FAIRCO Select will focus on various primary
lines of business. A.M. Best expects operating results to be profitable and
risk-based capitalization to remain fully supportive of the company’s business
Due to the strong reinsurance arrangement with TransRe, FAIRCO Select could
receive positive rating enhancement if TransRe’s ratings are upgraded.
Conversely, FAIRCO Select could experience negative rating actions if
TransRe’s ratings are downgraded.
The methodology used in determining these ratings is Best’s Credit Rating
Methodology, which provides a comprehensive explanation of A.M. Best’s rating
process and contains the different rating criteria employed in the rating
process. Best’s Credit Rating Methodology can be found at
A.M. Best Company is the world's oldest and most authoritative insurance
rating and information source. For more information, visit www.ambest.com.
Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
A.M. Best Co.
(908) 439-2200, ext. 5593
Assistant Vice President
(908) 439-2200, ext. 5053
Senior Manager, Public Relations
(908) 439-2200, ext. 5378
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
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