OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has placed under review with negative implications the Financial Strength Rating of B- (Fair) and the Long-Term Issuer Credit Rating of “bb-” (Fair) of Safepoint Insurance Company (Safepoint) (Temple Terrace, FL).
The under review with negative implications status for Safepoint reflects its near-term capital management plan for its holding company, Safepoint Holdings, Inc. The unfavorable pressure from the holding company, as it relates to the insurance company's overall balance sheet strength, has increased due to equity erosion and outstanding debt, which exceeds AM Best's threshold for what is considered a neutral level of financial leverage.
Safepoint’s capital management plan calls for an improved financial position for Safepoint Holdings, Inc., which is expected to alleviate the aforementioned pressure. Should these plans not materialize within the expected timeline, negative rating action may follow. The ratings will remain under review until management finalizes and executes this plan and AM Best evaluates the impact on the overall organization.
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