AM Best Assigns Credit Ratings to First Indemnity of America Insurance Company
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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 First Indemnity of America Insurance Company (FIAIC) (Morris Plains, NJ). The outlook assigned to the Credit Ratings (ratings) is stable.
The ratings reflect First Indemnity’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.
FIAIC is a niche provider focused on writing surety bonds for small to medium size contractors in sectors such as construction, paving, landscaping and other similar business segments. The company operates through long-term producer partnerships, mainly in Northeastern states, with a concentration of risk in New Jersey and Maryland. FIAIC’s balance sheet strength is supported by the company’s strongest level of risk-adjusted capitalization, as measured by Best’s Credit Adequacy Ratio (BCAR). The balance sheet strength assessment considers the company’s prudent reserving and solid reinsurance program, while also acknowledging limited financial flexibility and an elevated level of common stock leverage.
FIAIC has posted consistent operating profitability over the past five years, with positive income resulting from both underwriting operations and investment returns. While underwriting expenses have been elevated in comparison with composite figures, management is comfortable that these expenditures result in quality business on their books. The company’s risk management capabilities are considered appropriate and aligned with its stated risk profile.
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 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 © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
Raymond Thomson, CPCU, ARe, ARM
+1 908 439 2200, ext. 5621
Jennifer Marshall, CPCU, ARM
+1 908 439 2200, ext. 5327
Manager, Public Relations
+1 908 439 2200, ext. 5159
+1 908 439 2200, ext. 5644
Source: AM Best
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