Guilderland Reinsurance Company (GRC) has been assigned a Financial Strength Rating (FSR) of A- (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) by credit ratings company, AM Best.
The outlook assigned to GRC is stable, which reflects its role as a member of Knight and the explicit support provided to reinsurers through the implementation of a quota share reinsurance agreement with Knight Insurance.
Knight’s initial intentions for GRC are to directly write a program named GAP out of New York, an existing product currently written through another fronting insurer.
AM Best has also affirmed the FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) of Knight Insurance Company Ltd., KnightBrook Insurance Company and Knight Specialty Insurance Company. The outlook of these ratings is stable.
AM Best stated that the ratings of Knight reflect its balance sheet strength, assessed as very strong, as well as its adequate operating performance, neutral business profile, and appropriate enterprise risk management.
However, AM Best notes, “partially offsetting these strengths is its very high common stock leverage in pursuit of a group goal of long-term capital gains, mitigated by ample enterprise liquidity and financial flexibility, demonstrated by historical timely capital contributions when needed.”
Knight’s adequate operating performance benefits from significant operating and process enhancements implemented recently, including strengthening of underwriter guidelines and controls, better monitoring and management of its general agent partner relationships and oversight of third-party claims adjusters.
