AM Best Assigns Credit Ratings to Velocity 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 of “a-” (Excellent) to Velocity Specialty Insurance Company (VSIC) (Delaware). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings of VSIC reflect its 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 very strong balance sheet assessment reflects the company’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), on a pro forma basis with an initial equity capitalization from Oaktree Capital Management LLC. AM Best expects VSIC’s risk-adjusted capitalization to remain at the strongest level with additional positive assessment factors contributing, including quality of assets and a conservative investment portfolio.

AM Best assesses VSIC’s operating performance as adequate based on its projections and anticipated writings and infrastructure, which will be utilized with seasoned business relationships of affiliated entities. AM Best views the company’s business profile as limited given that VSIC is a startup entity and will have geographic concentration in Florida, Texas and Louisiana. VSIC’s ERM capabilities benefit from its overall framework at the parent level.

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.