AM Best Removes From Under Review With Developing Implications and Upgrades Credit Ratings of Velocity Specialty Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has removed from under review with developing implications and upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” (Excellent) from “a-” (Excellent) of Velocity Specialty Insurance Company (VSIC) (Wilmington, Delaware). The outlook assigned to these Credit Ratings (rating) is stable.

The ratings reflect VSIC’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 removal from under review with developing implications and rating upgrades reflect the completion of VSIC’s acquisition by FM Group (FM) in early May 2025. Due to the implicit and explicit support received as a recently acquired entity, as well as the higher ratings and larger capital base of its new parent, a notch of rating enhancement was extended to VSIC’s Long-Term ICR. FM intends to utilize VSIC to add excess and surplus lines capabilities to augment its core business and broaden its reach in the middle market property segment. In addition, technology and analytical innovations created at VSIC are expected to be integrated into FM’s businesses, where applicable. The company also benefits from FM participating as a quota share reinsurer on its most recent program.

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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