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FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 16, 2020 11:20 AM (EST)
AM Best has assigned a Financial Strength Rating (FSR) of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” to Alestri Insurance Company (Alestri) (Seattle, WA). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Alestri’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
Alestri is a joint venture between COPIC Insurance Company, Michigan Professional Insurance Exchange and Physicians Insurance A Mutual Company. The company plans to begin writing excess hospital professional liability (HPL) insurance through independent agents and brokers during 2020. Alestri will focus on providing coverage for the lead layer in excess of each policyholders’ self-insured retention. The vast majority of risk is ceded to its owners and Hannover Rück SE through quota share and excess of loss agreements. Thus, the company will operate with an elevated degree of reinsurance dependence. The associated credit risk is reduced significantly by the high credit quality of counterparties – all rated with an FSR of A- or higher.
AM Best anticipates Alestri’s underwriting results to be adequate over the long term, with ceding commissions offsetting incurred losses and expenses. Further, the conservative investment portfolio is expected to generate stable and consistent income, which will enhance overall operating profitability. The limited business profile assessment reflects the start-up nature of the company and product concentration in HPL. Alestri will benefit from the ERM programs of its owners, all of which have appropriate ERM frameworks in place and risk management capabilities that generally are in-line with their risk profiles.
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 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.