AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to Hadron Specialty Insurance Company (Hadron) (Little Rock, AR). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Hadron’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 very strong balance sheet strength assessment is based on the initial financing structure, which provides supportive risk-adjusted capital, currently assessed at the strongest level as measured by Best’s Capital Adequacy Ratio (BCAR), through the initial startup period. Hadron’s operating performance assessment of adequate anticipates that the company’s results will fall within a range of reasonable and expected outcomes for a fronting services organization, which will have a diverse population of managing general agents and credible reinsurance partners. Hadron’s business profile is viewed as limited. The company has an experienced management team and recognizes an available pipeline of opportunities. However, Hadron is entering a competitive area of the industry and will have to develop traits to separate itself from peers. AM Best recognizes the company’s planned implementation of a startup ERM structure that includes risk management, mitigation efforts and clearly defined reinsurance program provisions.
Negative rating actions could occur if Hadron’s risk-adjusted capital is short of funds, operating results fall adversely outside its initial projections, or risk appetite and tolerance levels prove to be inadequate for the company’s 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 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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