AM Best withdraws credit ratings from insurance company Alestri

OLDWICK, New Jersey – (COMMERCIAL THREAD) –AM Best downgraded Alestri Insurance Company’s long-term credit rating to B ++ (good) from A- (excellent) and the issuer’s long-term credit rating to “bbb +” (good) from “a-” (excellent) (Alestri) (Seattle, WASHINGTON). The outlook for these credit ratings (ratings) is stable. At the same time, AM Best withdrew the ratings because the company requested to no longer participate in AM Best’s interactive rating process.

The ratings reflect the strength of Alestri’s balance sheet, which AM Best considers strong, as well as its adequate operational performance, very limited business profile and appropriate risk management. Additionally, ratings reflect the increase in COPIC Insurance Group (COPIC), the primary rating unit.

Alestri began operations in 2020 as a joint venture between COPIC and two other unaffiliated medical professional liability companies, targeting the hospital excess professional liability insurance market through independent agents and brokers. Market conditions in this segment were significantly less favorable than expected. Subsequently, COPIC acquired all of the outstanding shares of Alestri from the founding members and imposed a moratorium on new business. All fonts written since their inception have expired. At present, there have been no complaints, although some events have been reported.

The downgrades reflect Alestri’s run-off status, partially offset by COPIC’s commitment to continue supporting the company. Financial stability and the proper handling of complaints should be maintained. Thus, Alestri also benefits from a rating upgrade thanks to the implicit and explicit support provided by COPIC. The revised balance sheet strength rating from strong to very strong reflects the modest size of the company’s surplus and its high degree of reliance on reinsurance. In addition, the very limited assessment of the company profile reflects the liquidation status of the company.

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’s 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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