AM Best assigns credit ratings to Richmond National Insurance Company

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OLDWICK, New Jersey – (COMMERCIAL THREAD) –AM Best has assigned a financial strength rating of A- (excellent) and a long-term issuer credit rating of “a-” (excellent) to Richmond National Insurance Company (Richmond National) (Concord, NH). The outlook assigned to these credit ratings (ratings) is stable.

The ratings reflect the strength of Richmond National’s balance sheet, which AM Best considers to be very strong, as well as its adequate operational performance, limited business profile and appropriate enterprise risk management (ERM).

Richmond National was formed in 2021 and will focus exclusively on the U.S. surplus and surplus line market, writing coverage for a diverse mix of hard-to-place risks for small businesses.

The very good strength of Richmond National’s balance sheet is supported by its risk-adjusted capitalization at the highest level, as measured by Best’s capital adequacy ratio (BCAR), for all confidence intervals in current periods. , projected future scores and in stress scenarios. Richmond National’s balance sheet valuation reflects the recent capital increase in support of expected premium growth, the conservative nature in which the investment portfolio will be established and the protection afforded by its comprehensive reinsurance program diversified among highly rated participants. Given the cautious nature with which management plans to develop the business, capital is in place from day one to support the five-year written premiums business plan.

AM Best believes that Richmond National’s operating performance is adequate based on a clearly defined and achievable business plan, which includes management’s goal of achieving pre-tax operating profitability over the course of the initial period of five years.

The assessment of Richmond National’s business profile is limited given the start-up nature of the organization.

Richmond National developed the framework to establish a strong ERM culture throughout the organization, which AM Best considers appropriate given the scale, scope and complexity of the organization.

Positive rating actions are unlikely in the short term. Key factors that could lead to negative action for Richmond National’s ratings and outlook include failure to meet medium-term projections as shared with AM Best, particularly if the resulting performance is below that of highly rated peers. similar.

Negative rating actions could also occur if Richmond National’s risk-adjusted capitalization declines to a level that does not support its very good assessment of its balance sheet strength.

This press release relates to credit ratings published on the AM Best website. For all rating information relating to the publication and relevant disclosures, including details of the office responsible for the publication of each of the individual ratings referenced in this publication, please see AM Best Recent rating activity Web page. For more information on the use and limits of credit rating opinions, please see Best Credit Score Guide. For more information on the proper use of Best’s credit scores, Best’s preliminary credit reports, and AM Best’s press releases, please see Guide to Proper Use of Best Ratings and Reviews.

AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. Based in the United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information visit www.ambest.com.

Copyright © 2021 by AM Best Rating Services, Inc. and / or its affiliates. ALL RIGHTS RESERVED.


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