A.M. Best Affirms Ratings of Seaworthy Insurance Company
May 19 2015 - 2:14PM
Business Wire
A.M. Best has affirmed the financial strength rating of
A+ (Superior) and the issuer credit rating of “aa” of Seaworthy
Insurance Company (Seaworthy) (Annapolis, MD). The outlook for
both ratings is stable.
The ratings reflect Seaworthy’s strong risk-adjusted capital,
historical favorable experience within the ocean and inland marine
specialty niche and the implicit and explicit support provided by
the ultimate parent, Berkshire Hathaway Inc. (Berkshire)
[NYSE:BRK.A and BRK.B], and members of the Berkshire
organization.
The ratings take into account significant reinsurance protection
provided by National Indemnity Company (NICO) (Omaha, NE)
through a 75% quota share agreement, along with an additional
reinsurance agreement providing 100% coverage for named windstorms.
In addition to these programs, GEICO Corporation now serves
as an agent for Seaworthy’s inland marine (boat) business.
These positive rating factors are partially offset by
Seaworthy’s product concentration and the execution risk with the
expansion of business outside its historical business distribution
model.
Negative rating action could occur if capitalization and/or
operating performance fall markedly short of A.M. Best’s
expectations as a result of a significant deterioration in loss
trends or premium volume growth exceeding Seaworthy’s risk-adjusted
capital position. Given the company’s limited business profile, the
rating is subject to sudden shifts in the market or an unforeseen
disruption in distribution. Because of the breadth of the
relationship between Seaworthy and other Berkshire companies,
change in the ratings or outlooks of any of the associated
insurance companies may impact the rating of Seaworthy.
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
www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
- Rating Members of Insurance Groups
- Risk Management and the Rating Process
for Insurance Companies
- Understanding BCAR for
Property/Casualty Insurers
This press release relates to rating(s) that have been
published on A.M. 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 visit A.M.
Best’s Ratings & Criteria Center.
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 © 2015 by A.M. Best Company,
Inc. ALL RIGHTS RESERVED.
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version on businesswire.com: http://www.businesswire.com/news/home/20150519006912/en/
A.M. Best CompanyRobert Raber, 908-439-2200, ext.
5696Senior Financial
Analystrobert.raber@ambest.comorHenry Witmer , CPCU,
ARM-E, 908-439-2200, ext. 5097Assistant Vice
Presidenthenry.witmer@ambest.comorChristopher
Sharkey, 908-439-2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorJim Peavy,
908-439-2200, ext. 5644Assistant Vice President, Public
Relationsjames.peavy@ambest.com
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