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FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 22, 2019 10:44 AM (EST)
AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” of New York Marine and General Insurance Company (New York, NY) and its wholly owned subsidiaries, Gotham Insurance Company (New York, NY) and Southwest Marine and General Insurance Company (Scottsdale, AZ) (collectively referred to as ProSight Specialty Group). Concurrently, AM Best has affirmed the Long-Term ICR of “bbb-” and the Long-Term Issue Credit Ratings of “bbb-” on the $140 million 7.5% senior unsecured notes due November 2020 and the $25 million 6.5% senior unsecured notes due November 2020 of ProSight Global, Inc. (Delaware). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect ProSight Specialty Group’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The ratings also reflect the group’s supportive risk-adjusted capitalization, strong market niche position in its core specialty lines of business and generally favorable long-term loss ratio that compares favorably with the composite. The ratings further recognize the strength of the senior management team, and the progress the team has made in improving operating results since 2017, which followed a material downturn in operating results in 2015 and 2016, attributed primarily to adverse loss reserve development in the commercial auto liability line.
In addition, management has committed itself to improving underwriting performance, as demonstrated by its replacing less profitable niches with ones that it believes can be written profitably throughout market cycles. Finally, the management team continues to exhibit strong expertise and be well-positioned following the recent change in chief executive officer. These positive rating factors are partially offset by the group’s elevated underwriting leverage ratios relative to the composite and continued adverse prior-year loss reserve development on discontinued business.
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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.