Oldwick, NJ -(BusinessWire)- AM Best has assigned a Financial Strength Rating of A-(Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to SteadPoint Insurance Company (SteadPoint) (Nashville, TN). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect SteadPoint’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM). Additionally, the balance sheet strength assessment reflects SteadPoint’s strongest risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), which has been supported by five consecutive years of surplus growth. Despite substantial surplus growth over the prior five- and 10-year periods, the company remains a smaller player and has limited financial flexibility with no direct access to capital markets. Nonetheless, surplus growth has been organic as evidenced by the company’s operating performance, which reflects consistent underwriting income and strong earnings that outperform the workers’ compensation (WC) industry composite. SteadPoint’s business profile assessment is driven by the company’s focus on a single line of business, and geographic concentration throughout the southeastern United States. AM Best views SteadPoint’s ERM program as appropriate for its overall size and risk profile. The stable outlooks reflect AM Best’s expectations that SteadPoint will execute on its business plan and maintain strong operating results to support growth initiatives. Additionally, AM Best expects that SteadPoint’s risk management program will continue evolving with its business initiatives, and that the company will continue to expand its senior leadership team in support of its business strategy and plan.
SteadPoint is a Tennessee-domiciled WC insurer that provides coverage in Tennessee on a direct basis. Additionally, the company also assumes WC risk produced in several other southeastern states from its relationship with the fronting company, Benchmark Insurance Company. AM Best expects that SteadPoint will continue operating under this structure, although transition to writing more direct business on its own paper.
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