AM Best assigns credit ratings to First Indemnity of America 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 First Indemnity of America Insurance Company (FIAIC) (Morris Plains, NJ). The outlook assigned to credit ratings (ratings) is stable.

The ratings reflect the strength of First Indemnity’s balance sheet, which AM Best considers to be very strong, as well as its adequate operational performance, limited business profile and appropriate management of business risks.

FIAIC is a niche provider focused on underwriting surety bonds for small and medium-sized contractors in industries such as construction, paving, landscaping and other similar industries. The company operates through long-term partnerships with producers, primarily in the northeastern states, with a concentration of risk in New Jersey and Maryland. The strength of FIAIC’s balance sheet is supported by the company’s highest level of risk-adjusted capitalization, as measured by the Best Solvency Ratio (BCAR). The balance sheet strength assessment takes into account the prudent reserve and strong reinsurance program of the company, while also recognizing limited financial flexibility and a high level of leverage on common stocks.

FIAIC has shown consistent operating profitability over the past five years, with positive revenues resulting from both underwriting transactions and returns on investment. While underwriting expenses have been high relative to the composite numbers, management is confident that these expenses translate into quality business on their books. The company’s risk management capabilities are considered appropriate and aligned with its stated risk profile.

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 issuing each of the individual ratings referenced in this publication, please see AM Best’s Recent Rating Activity webpage. . For more information on the use and limitations of credit rating reviews, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best Credit Ratings, Best Preliminary Credit Ratings, and AM Best press releases, please see the Guide to Appropriate Use of Best Ratings and Ratings.

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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