AM Best Assigns Credit Ratings to New Horizon Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb+” (Good) to New Horizon Insurance Company (NHIC) (Houston, TX). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect NHIC’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).

NHIC began operations in September of 2016, started writing business during the first quarter of 2017, and has continued to grow its book of business through the first quarter of 2024. The company is a Texas-domiciled property/casualty insurer, licensed to write business in Texas, New Mexico, Arizona and California. The core business is providing coverage in the United States to vehicles with cross-border operations between Mexico and the United States. NHIC is a wholly owned subsidiary of NHIC Holdings, LLC, a privately held Texas company that also owns three other entities. Those entities include managing general agency Green Road Services, LLC, Viridi Via Technologies, LLC, the technology arm of Green Road Services, LLC, and New Horizon IC S DE RL DE CV., a Mexico subsidiary that services accounts and employs support staff in Mexico. Green Road Services, LLC underwrites 100% of NHIC’s book of business and handles 100% of its claims.

NHIC’s balance sheet strength is well-supported by its very strong level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). Additional positive factors include the company’s conservative underwriting leverage, favorable liquidity measures and consistent policyholder surplus appreciation. However, the company has elevated ceded leverage measures and has reported adverse reserve development historically.

The company’s average operating, and combined ratios compare very favorably with its composite and are driven by profitable underwriting results and enhanced by investment income. The company has been on a consistent upward trajectory since beginning operations, and AM Best expects positive operating performance to continue with less variability.

AM Best assesses NHIC’s business profile as limited due to the company’s limited product offerings and highly concentrated area of business. However, the company maintains a strong brand and name recognition as the market leader of an otherwise small niche.

New Horizon’s ERM, which AM Best assesses as appropriate, maintains a formalized ERM program with risk tolerances and mitigation strategies. NHIC maintains sufficient reinsurance protection for longer-tail weather events.

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