AM Best Upgrades Credit Ratings of Jet Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to “a-” (Excellent) from “bbb+” (Good) of Jet Insurance Company (Jet) (Charlotte, NC). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.

The ratings reflect Jet’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 rating upgrades reflect Jet’s balance sheet strength, which is supported by the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). In addition, Jet has generated organic surplus growth in recent years due to profitable operating performance. The company’s balance sheet strength benefits from low limit surety bond exposure, quota share reinsurance, a relatively low risk investment portfolio, as well as strong liquidity and cash flow measures.

AM Best views Jet’s operating performance as adequate based on its historical results since inception and well-defined business plan. Jet was formed in 2018 as a property/casualty insurance company specialized in writing surety and fidelity bonds. The company is building a geographically diverse book of business sourced through its affiliated wholesale insurance agency and Jet’s direct-to-principal distribution capability, which was launched in March 2022. Jet’s limited business profile reflects its targeted business plan to write nearly all transactional commercial surety bond types, with a limited appetite for contract surety and fidelity bonds. AM Best’s expects that Jet’s business plan will be executed in line with company provided projections and within manageable deviations, and that its balance sheet strength metrics will be sustained as it grows premiums.

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.

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