AM Best Assigns Credit Ratings to Concert Specialty Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) to Concert Specialty Insurance Company (CSIC) (Helena, MT). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect CSIC’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The ratings consider the recent capital raise by CSIC’s owners, Freedom Underwriters LLC, Century Equity Partners and WT Holdings, Inc., and the downstreaming of a portion of the proceeds into CSIC, following a similar capital infusion into a sister company, Concert Insurance Company [Long-Term ICR of “a-” (Excellent) with a stable outlook], in October 2021. The remainder of the capital resides at the holding company, Concert Group Holdings, Inc., and will be used to fund future growth and facilitate broader licensing and expansion initiatives going forward.

On a projected basis, CSIC’s level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is assessed at the strongest level and is supportive of its planned growth initiatives and increased reinsurance utilization over the next several years. As the management team has extensive relationships in the reinsurance and insurance-linked securities (ILS) markets, AM Best expects CSIC’s reinsurance panel to be well-balanced between the traditionally rated market and fully collateralized reinsurance market, as well as being highly diversified.

CSIC’s operating performance assessment of adequate is based on management’s clearly defined business plan and projections that are closely aligned with its new strategy. The ratings also reflect CSIC’s limited business profile, which is in its early stages and is expected to improve over time. CSIC intends to write on a surplus lines basis countrywide, except in Montana, where it will write on an admitted basis. The initial business being deployed in CSIC will focus on captive-fronted business, diversified geographically and by line of business. New business will also include traditional program business. The programs will be administered by managing general agencies and program administrators located across the United States. The company’s ERM assessment of appropriate is based on CSIC being directed and governed by new leadership and a board that has established its own risk framework, risk tolerances and risk appetite.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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