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FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 11, 2021 11:50 AM (EST)
AM Best has downgraded the Financial Strength Rating to B++ (Good) from A- (Excellent) and the Long-Term Issuer Credit Rating to “bbb+” (Good) from “a-” (Excellent) of Alestri Insurance Company (Alestri) (Seattle, WA). The outlook of these Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn the ratings as the company has requested to no longer participate in AM Best’s interactive rating process.
The ratings reflect Alestri’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, very limited business profile and appropriate risk management. In addition, the ratings reflect lift from COPIC Insurance Group (COPIC), the lead rating unit.
Alestri began operations in 2020 as a joint venture between COPIC and two other unaffiliated medical professional liability carriers, targeting the excess hospital professional liability insurance market through independent agents and brokers. Market conditions in this segment were significantly less favorable than anticipated. Subsequently, COPIC has acquired all outstanding shares of Alestri from the founding members and placed a moratorium on new business. All policies written since inception have expired. At this time, there have been no claims, although some occurrences 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 appropriate claims handling are expected to be maintained. Thus, Alestri also receives rating lift due to the implicit and explicit support provided by COPIC. The revised balance sheet strength assessment to strong from very strong reflects the company’s modest surplus size and high degree of reinsurance dependence. Furthermore, the very limited business profile assessment reflects the company’s run-off status.
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 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.