OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a financial strength rating of A- (Excellent) and an issuer credit rating of “a-” to Radnor Specialty Insurance Company (Radnor Specialty) (Wayne, PA). The outlook assigned to both ratings is stable.
The ratings reflect Radnor Specialty’s favorable level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), the experience of the management team and its targeted business plan. Furthermore, these ratings benefit from the support Radnor Specialty will receive from an affiliated company, United States Liability Insurance Company (USLI) and its ultimate parent, Berkshire Hathaway Inc. (Berkshire) [NYSE: BRK.A and BRK.B]. Partially offsetting these positive rating factors are the inherent concerns with the company’s profile as a start-up company with regard to marketing, pricing, reserving, loss experience and growth potential.
A.M. Best believes the rating is appropriately placed at this time. The rating could be upgraded after the initial development period through better than expected underwriting performance, stronger than planned overall operating income, or significant gains in risk-adjusted capital position. The rating could be impacted negatively from growth outpacing risk-adjusted capital or operational structure, less than optimal loss experience or failure to reach sustainable levels of premium.
Radnor Specialty is a wholly owned subsidiary of Mount Vernon Specialty Insurance Company (MVSI) (Wayne, PA). These two companies are positioned under the Devon Park Specialty Insurance business unit.
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.
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