OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb-” to WT Holdings, Inc. (WT Holdings) (Memphis, TN). The outlook assigned to this Credit Rating (rating) is stable.
Concurrently, A.M. Best has affirmed the Financial Strength Ratings (FSRs) of A- (Excellent) and the Long-Term ICRs of “a-” of Stillwater Insurance Company (SIC) (headquartered in Jacksonville, FL), its wholly owned subsidiary, Stillwater Property & Casualty Insurance Company (SPAC) (Jericho, NY) and a separately rated subsidiary, Evergreen National Indemnity Company (Evergreen) (Mayfield Heights, OH), collectively known as Stillwater Insurance Group. The outlook of these ratings remains stable.
The rating assigned to WT Holdings is based on its role as the ultimate parent insurance holding company for SIC. WT Holdings is a privately owned insurance holding company offering personal and commercial property and casualty insurance nationwide through its subsidiaries. Both financial leverage and interest coverage metrics of WT Holdings are within guidelines for its rating. The rating assignment further considers WT Holdings’ successful track record of raising equity to fund acquisitions and strategic initiatives, including its most recent capital raise of $60 million on April 25, 2018. WT Holdings operates through three distinct business units: SIC and SPAC, Tri-State Consumer Insurance Company (Tri-State) (Jericho, NY) and Evergreen. SIC and SPAC provide standard personal lines products that consist mainly of homeowners and small commercial coverages nationwide. Tri-State is a single-state personal lines insurer writing primarily homeowners and private passenger automobile lines exclusively in downstate New York. Evergreen is a niche surety provider serving the waste management industry.
Stillwater Insurance Group’s ratings reflect its balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The rating affirmations also reflect the group’s very strong risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio, high quality investment portfolio and effective reinsurance program. These strengths are partially offset by the group’s exposure to weather-related events as observed in 2017 and above average underwriting leverage relative to the composite.
Evergreen’s ratings reflect its 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. The rating affirmations further reflect Evergreen’s risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio, high quality investment portfolio and conservative reserving practices. However, these strengths are partially offset by the company’s limited business profile and reinsurance dependence.
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