NEW YORK--(BUSINESS WIRE)--KBRA assigns a BBB+ Insurance Financial Strength Rating (IFSR) to Safepoint Insurance Company and a BBB IFSR to Cajun Underwriters Reciprocal Exchange. The Outlook for all ratings is Stable.
Safepoint Insurance Company is a Florida domiciled property and casualty insurance company headquartered in Temple Terrace, FL which writes primarily homeowners multi-peril business and allied lines in coastal regions in Florida, Louisiana, and Texas. Cajun Underwriters Reciprocal Exchange is a Louisiana domiciled property and casualty insurance company headquartered in Metairie, LA which writes primarily homeowners multi-peril and allied lines solely in Louisiana.
Key Credit Considerations
Positively impacting the ratings are the companies' conservative reserving practices, adequate risk-based capitalization, experienced management team and conservative investment portfolio. Negatively impacting the ratings are exposure to event risk, heavy reliance on reinsurance, and geographic and product concentration.
The following could result in a ratings upgrade: consistent net underwriting gains contributing to organic surplus growth, sustained improvement in ceded reinsurance leverage, Safepoint Insurance Company's profitable expansion to Louisiana and other states outside of Florida to better diversify earnings, favorable change in risk profile, or reduced financial leverage at Cajun Underwriters Reciprocal Exchange. The following could result in a ratings downgrade: deterioration in risk-adjusted capitalization and underwriting leverage, natural catastrophe events negatively impacting the balance sheet, an inability to obtain reinsurance on acceptable terms and pricing causing an increase in loss exposure, a reduction in the ability to write policies, or a drag on earnings, an unfavorable change in risk profile, or sustained material adverse development.
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Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
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Information on the meaning of each rating category can be located here.
Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
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