AM Best Places Credit Ratings of Velocity Specialty Insurance Company Under Review With Positive Implications

JANUARY 09, 2025 11:53 AM (EST)

AM Best Places Credit Ratings of Velocity Specialty Insurance Company Under Review With Positive Implications

CONTACTS:

FOR IMMEDIATE RELEASE

OLDWICK - JANUARY 09, 2025 11:53 AM (EST)
AM Best has placed under review with positive implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of "a-" (Excellent) of Velocity Specialty Insurance Company (VSIC) (Delaware).

The Credit Ratings (ratings) have been placed under review with positive implications following the announcement on Jan. 7, 2025, that VSIC has entered into a definitive agreement under which the company will be acquired by FM Group.

The under review with positive implications status reflects the current higher ratings and larger capital base of FM Group, as well as its potential support to VSIC after the transaction. AM Best will further assess the quality and extent of support VSIC expects to receive under the new ownership structure, VSIC's strategic positioning within FM Group, as well as any financial and operational impact on VSIC from the transaction.

The ratings will remain under review with positive implications pending the close of the transaction, which is subject to regulatory approval, and until AM Best completes its assessment of the impact on VSIC's rating fundamentals.

This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.