OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of KW Specialty Insurance Company (KW Specialty) (Wilmington, DE).
The Credit Ratings (ratings) reflect KW Specialty’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.
The revision of the outlooks to stable reflects KW Specialty’s good 2022 operating results, as the company successfully executed on its plans to write program business on a direct basis with prudent underwriting. In late 2021, KW Specialty entered into a loss portfolio transfer agreement with a Delaware captive 100% owned by its parent company, Kramer-Wilson Company, Inc., ceding all of its loss reserves from a handful of assumed programs that the company exited in 2021, which generated poor results for KW Specialty in prior years. The development from these programs no longer affects KW Specialty’s operating results; AM Best’s view is that the company is on track again toward meeting its original business plans. The company’s expense ratio is currently quite high from building out systems and hiring staff as part of the startup process; however, AM Best expects it to gradually decrease as the company builds out its premium base in the next 2-3 years.
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 Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.