OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a Financial Strength Rating (FSR) of A- (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” to KW Specialty Insurance Company (KWS) (Wilmington, DE). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect KWS’ balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
Based on the business plan shared with A.M. Best, KWS’ risk-adjusted capital, as measured by the Best’s Capital Adequacy Ratio (BCAR), is projected to be at the strongest level over the next five years. The company’s liquidity, asset/liability management and quality of assets are supportive of the balance sheet assessment. KWS’ overall operating performance is assessed as adequate, given the expected results over the near term. The business profile is viewed as limited due to lack of product and geographic diversification. ERM is assessed as appropriate, based on the company’s projected size and risk profile.
Ability to execute on business plan will be a key rating factor going forward. Factors that could adversely impact the rating include unfavorable operating profitability trends, outsized underwriting or investment losses and a decline in risk-adjusted capital that would not be supportive of the current rating levels.
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