OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to First Mile Insurance Company (FMIC) (Boca Raton, FL). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect FMIC’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
FMIC is a startup contractual liability insurance policy writer domiciled in southern Florida. The company will benefit from a built-in existing production base from an affiliated warranty provider that generated significant premium volume in 2022. FMIC anticipates that the volume of business derived from its network of closely related service contract providers will provide it with a steady revenue stream that uniquely positions the company for future growth and expansion. FMIC’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is expected to be maintained at the strongest level. The company will operate with an elevated degree of reinsurance dependence, with 100% of premiums and reserves to be ceded to unrated captives and reinsurers that are typically owned by policyholders. Collateral arrangements in place largely offset the associated credit risks. The company’s operating results are projected to be consistently profitable in the years ahead as it carefully expands operations and its geographic footprint. The management team has significant depth of industry experience and have implemented an appropriate ERM framework for the size and scope of the company.
Negative rating action may occur if risk-adjusted capitalization materially declines for any reason. Positive rating action may occur following a long-term positive trend in operating performance, significantly contributing to surplus growth and risk-adjusted capitalization.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
