AM Best Affirms Credit Ratings of Everspan Indemnity Insurance Company and Its Core Affiliates

AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) of Everspan Indemnity Insurance Company (Scottsdale, AZ) and its core affiliates, collectively referred to as Everspan Group. The outlook of these Credit Ratings (ratings) is stable. See below for a listing of companies and ratings.

The ratings reflect Everspan Group’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 (ERM).

The balance sheet strength assessment recognizes risk-adjusted capitalization that is supportive of the group’s current and future exposures over its initial five-year startup period. Capital was initially provided by Ambac Financial Group, Inc. [NYSE: AMBC]. AM Best assesses Everspan Group’s operating performance as adequate based on execution and implementation of its business plan during its formative stages. The group began actively writing premium during the second quarter of 2021 and since then the results through the first quarter of 2024 have been consistently within AM Best’s expectations. AM Best views the group’s business profile as limited. This encompasses the group’s position as a specialty program writer with significant risk retention, framed within the competitive space for participating fronting type carriers. The group provides services for a diverse mix of managing general agents aligned with highly rated reinsurance partners. The enterprise retains a strategic level of net premium on select programs and applies gross lines approach to underwriting. The group’s ERM captures a clearly defined risk appetite structure; it addresses the heightened risks inherent in its business profile and was designed by its extensively experienced management team.

Negative rating actions could occur if risk-adjusted capitalization is short of needs, actual operating results fall adversely outside the initial projections, the enterprise is unable to gain traction within the parameters of its business profile, or risk appetite and tolerance levels prove to be inadequate for the group’s profile.

The FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) have been affirmed with stable outlooks for the following members of Everspan Group:

• Everspan Indemnity Insurance Company
• Everspan Insurance Company
• Greenwood Insurance Company
• Consolidated Specialty Insurance Company
• Providence Washington Insurance Company

The FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Consolidated National Insurance Company (CNIC) (Littleton, CO), which is not actively writing any business, remain under review with developing implications. CNIC was initially placed under review on Feb. 21, 2024, following the announcement that Everspan Insurance Company had entered into a stock purchase agreement with Hagerty Insurance Holdings Inc. to sell all of the issued and outstanding capital stock of CNIC. The transaction is subject to customary regulatory approvals and is expected to close in the third quarter of 2024. The ratings of CNIC remain under review as AM Best continues to monitor the transaction through closing.

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.

Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240613808098/en/