OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of FHM Insurance Company (FHM) (Jacksonville, FL). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect FHM’s balance sheet strength, which AM Best categorizes as very strong, as well as its marginal operating performance, limited business profile and marginal enterprise risk management (ERM).
The rating actions follow Florida Citrus, Business & Industries Fund’s (FCBI) decision to terminate the previously announced transaction under which FCBI would acquire FHM Insurance Services, a Florida insurance agency and managing general agent of FHM. FCBI’s decision was due to the unsuccessful approval or consent of the Florida Office of Insurance Regulation.
FHM’s rating affirmations are attributable to its strongest level of risk-adjusted capitalization, partially offset by unfavorable operating performance and surplus erosion in recent years. The stable outlook assigned to the ratings primarily reflects AM Best’s expectation that FHM’s operating performance will improve over the near term, and that its balance sheet strength will remain supportive of the current rating levels.
AM Best will continue to monitor FHM’s progress on strategic initiatives and the overall impact on its balance sheet strength, operating performance, business profile and ERM.
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