A.M. Best Assigns Credit Ratings to KW Specialty Insurance Company

OLDWICK, N.J.--()--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.

This press release relates to Credit Ratings 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 see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Edin Imsirovic, +1 908 439 2200, ext. 5740
Senior Financial Analyst
edin.imsirovic@ambest.com
or
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Robert Raber, +1 908 439 2200, ext. 5696
Associate Director
robert.raber@ambest.com
or
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Edin Imsirovic, +1 908 439 2200, ext. 5740
Senior Financial Analyst
edin.imsirovic@ambest.com
or
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Robert Raber, +1 908 439 2200, ext. 5696
Associate Director
robert.raber@ambest.com
or
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com