AmerInst’s Ratings Affirmed
Ratings agency A.M. Best Co. has today (Dec. 29) affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of Bermuda-based AmerInst Insurance Group, Ltd . The outlook for both ratings is stable.
The ratings reflect AmerInst’s strong capitalisation and its experienced management team as well as the company’s niche expertise as a reinsurer of professional liability policies, said the agency.
“Partially offsetting these positive rating factors is AmerInst’s narrow spread of underwriting risk, in addition to the execution risk associated with the implementation of the new business plan,” said Best. “AmerInst intends to continue under its new business plan to employ a conservative reserving methodology under which it had historically booked to a higher loss ratio than that of its primary carrier.
“AmerInst has met A.M. Best’s higher capitalisation requirements, which mandate a more conservative level of risk-based capital for a new business plan. A.M. Best will continue to monitor AmerInst as it implements this business plan. Any material negative deviation from the business plan in terms of management, earnings, capitalisation or risk profile could result in negative rating pressure.”
Founded in 1998 and operating out of Windsor Place in Hamilton, AmerInst Insurance Group, Ltd. – through its subsidiary AmerInst Insurance Company Ltd. – primarily engages in reinsurance business in the United States. It acts as an agent for soliciting, underwriting, quoting, binding, issuing, cancelling, non-renewing, and endorsing accountants’ professional liability and lawyers’ professional liability insurance coverage.
