AM Best Comments on Credit Ratings of First Indemnity of America Insurance Company Following Sale Announcement

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has commented that the Credit Ratings (ratings) of First Indemnity of America Insurance Company (FIA) remain unchanged following the Aug. 6, 2024, announcement of an agreement whereby the company will be sold by its parent, ABSCO Ltd. Corporation, to Palomar Holdings, Inc. [NASDAQ: PLMR], subject to customary regulatory approval. The sale is expected to close in late 2024 or early 2025.

FIA has a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent). The outlooks of these ratings are stable.

The transaction is not anticipated to have a material impact on the current rating-related assessments of FIA. AM Best will continue to monitor developments as the transaction works through the regulatory approval process. Under the sale agreement, senior management will stay in place at FIA and continue to maintain its operating fundamentals as a monoline surety writer.

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