AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to Fortegra Insurance UK Ltd. (FIUK) (United Kingdom). Concurrently, AM Best has placed these Credit Ratings (ratings) under review with positive implications.

The ratings reflect FIUK’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). The ratings also consider, in the form of rating lift, AM Best’s expectation that FIUK’s parent, The Fortegra Group, Inc. (Fortegra), will provide financial support to the company, if needed.

FIUK is a UK-incorporated start-up subsidiary of Fortegra, a U.S. insurance group specialising in program underwriting for personal and commercial lines property/casualty (P/C) business. FIUK was established in 2024 to write specialty P/C insurance business in the UK market.

The under review with positive implications status reflects AM Best’s view that the announced acquisition of Fortegra by DB Insurance Co., Ltd., if completed as contemplated and subject to regulatory approvals and customary closing conditions, could enhance Fortegra’s financial flexibility, operating scale and execution capabilities. The action also considers Fortegra’s strategic importance to the prospective parent as a platform for international growth and expansion. The ratings will remain under review with positive implications pending the close of the transaction and AM Best’s evaluation of parental support, integration plans, and the expected impact on the organisation’s balance sheet strength, operating performance, business profile and ERM. AM Best will continue discussions with management throughout this period.

The company’s initial risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), is assessed at the strongest level, supported by initial capital of GBP 20 million. The company is expected to have a conservative investment strategy consisting of high credit quality fixed income securities. AM Best expects the company’s risk-adjusted capitalisation to remain at the strongest level prospectively, as measured by BCAR, supported by further capital injections from the parent during the start-up phase and adequate operating performance. However, as a result of FIUK’s small size and start-up nature, its balance sheet is subject to potential volatility due to fluctuations in financial results and underwriting exposures.

FIUK projects positive technical results during the start-up phase, supported by local and group underwriting expertise. Overall profitability will be enhanced by sound investment income. AM Best assesses the prospective operating performance as adequate. FIUK’s business profile is considered limited, driven by significant reliance on a number of outsourcing partners, including managing general agents. The company aims to mitigate this risk through careful selection, management and monitoring of its business partners.

The ratings assigned to FIUK represent a change of a prior rating committee determination due to the receipt of new and material information following client notification.

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.

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