OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” to Fortegra Specialty Insurance Company (Fortegra Specialty) (Scottsdale, Arizona). Fortegra Specialty is ultimately owned by Tiptree Inc. [(NASDAQ:TIPT], the parent company of Fortegra Financial Corporation. The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Fortegra Specialty’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. Fortegra Specialty is being added as a member of the Fortegra P&C Group due its strategic role in the consolidated organization, shared operations and management, and a pooling agreement with its affiliated companies.
Fortegra Specialty is a newly established, Arizona-domiciled insurance company that will offer surplus lines products not offered through its affiliated companies. The company was capitalized initially with a $55 million contribution from the parent company. AM Best notes that initial projections forecast high growth trends in early years, benefiting from existing managing general agency relations with its affiliated companies. AM Best will continue to monitor the ability of the company to execute on its business strategy and maintain appropriate levels of capitalization.
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