[ad_1]
AM Best has assigned a Preliminary Credit Assessment (PCA) to Victor Insurance Exchange (Wilmington, DE) with a Financial Strength Assessment of A- pca (Excellent) and a Long-Term Issuer Credit Assessment of “a-” pca (Excellent). The outlook assigned to this PCA is stable.
The PCA reflects Victor Insurance Exchange’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The very strong balance sheet strength assessment reflects Victor Insurance Exchange’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR) on a proforma basis for an expected initial capitalization via a surplus note funded by Gallatin Point Capital. AM Best expects Victor Insurance Exchange’s risk-adjusted capitalization to remain within the strongest category with additional positive assessment factors contributing, including a low-risk conservative investment portfolio and comprehensive reinsurance programs with a diversified panel of participants. Partially offsetting these strengths is Victor Insurance Exchange’s high financial leverage due to the surplus note, exposure to catastrophe losses and expected modest reliance on reinsurance given its risk profile.
AM Best assesses Victor Insurance Exchange’s operating performance as adequate based on the company’s projections and the fact that the anticipated writings and associated historical loss ratios are well known to the company via the exclusive managing general agent, ICAT. AM Best views Victor Insurance Exchange’s business profile as neutral given ICAT’s demonstrated extensive industry experience in managing the business through various underwriting cycles. Victor Insurance Exchange will be a geographically diversified writer of small to medium-sized commercial risks as well as coastal residential properties with products distributed through ICAT’s existing…
[ad_2]
