AM Best Affirms Credit Ratings of Coalition Insurance Company
March 28 2024 - 11:56AM
Business Wire
AM Best has affirmed the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Rating of “a-”
(Excellent) of Coalition Insurance Company (CIC) (New York, NY).
The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect CIC’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).
CIC’s balance sheet strength is supported by the strongest level
of risk-adjusted capitalization, as measured by Best’s Capital
Adequacy Ratio (BCAR), surplus growth, conservative loss reserves
and low underwriting leverage produced in the first nine months of
operation and its five-year pro forma.
CIC’s adequate operating performance is largely based on CIC
scaling its book of business through its affiliate, Coalition
Insurance Solutions, Inc. (CIS) and the ability to execute on the
company’s strategic business plan, including, pro forma operating
results over the next five years. Cyber insurance is one of the
fastest growing lines of business, and between business and
management projects the business to expand rapidly with sustained
premium growth for the company over the next five-year period.
CIC’s business profile assessment of limited reflects its
position as a new company writing cyber insurance. The company is
licensed and operating in all 50 states and the District of
Columbia and is currently providing coverage for cyber liability
and technology errors & omissions. CIS has relationships with a
broad base of insurance brokers, which has access to the company's
proprietary system to quote, rate and bind policies. CIC's
management team includes diverse backgrounds with extensive
experience in insurance, engineering & product, cybersecurity
and software development. CIC partners with its brokers and
insureds to educate and remediate vulnerabilities identified in
their systems.
CIC's ERM is considered appropriate for its risk profile,
overall underwriting, risk management, remediation response and
circular and continuous underwriting. CIC understands the risk,
reviews vulnerabilities and manages risks within its risk appetite
and risk tolerances. CIC is dependent on its parent for most of its
risk management resources and decision-making as it works to
develop its own framework over time.
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.
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Kourtnie Beckwith Senior Financial Analyst +1
908 882 1649 kourtnie.beckwith@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Fred Eslami Associate Director +1 908 882
1759 fred.eslami@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com