A.M. Best Affirms Ratings of Wright National Flood Insurance Company
July 28 2015 - 9:26AM
Business Wire
A.M. Best has affirmed the financial strength rating of
A- (Excellent) and the issuer credit rating of “a-” of Wright
National Flood Insurance Company (WNFIC) (San Antonio, TX). The
outlook for both ratings is stable.
The ratings of WNFIC (formerly known as Fidelity National
Indemnity Insurance Company) reflect its strong risk-adjusted
capitalization and favorable operating results, as well as the
support provided by its ultimate parent, Brown and Brown,
Inc. (NYSE:BRO) and exclusive reinsurance arrangement with the
U.S. government via the Federal Emergency Management Agency (FEMA).
Offsetting these positive rating factors are the monoline nature of
WNFIC’s business and its dependence on National Flood Insurance
Program (NFIP), the potential concentration of risk derived from
excess flood policies, albeit small in nature, and potential
changes in FEMA’s rules related to Write Your Own Program selection
practices.
WNFIC derives significant revenue and fee-based income from its
book of non-risk-bearing NFIP business, as well as from its excess
flood coverage. These are expected to significantly contribute to
the company’s overall profitability.
A.M. Best views WNFIC’s experienced management and corporate
strategy as a major factor that strengthens its ratings, given the
company’s conservative underwriting, operational goals and
transparency. A.M. Best also views WNFIC’s enterprise risk
management practices as strong given their impact on the company’s
conservative risk culture and defined risk controls, as well as
providing optimization of its capital and surplus.
A.M. Best expects WNFIC’s future operating performance to be
strong, with a stable earnings profile that should further support
the efforts to control its growth and business writings, which are
consistent with its capital and surplus position.
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/20150728006040/en/
A.M. BestFred Eslami, 908-439-2200, ext.
5406Senior Financial
Analystfred.eslami@ambest.comorSteven Chirico, CPA,
908-439-2200, ext. 5087Assistant Vice
Presidentsteven.chirico@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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