OLDWICK, N.J. - (Business Wire) A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit rating (ICR) of “a-” of Indemnity Insurance Corporation of DC, RRG (IICDC, RRG), a member of Indemnity Insurance of DC Group (IIDC). The outlook for both ratings is stable. These ratings reflect IICDC, RRG’s excellent capitalization level, experienced management team, superior claims and loss control management, strict underwriting guidelines and a good geographic spread of risks. Partially offsetting these positive rating factors is the execution risk associated with the implementation of the company’s business plan.
A critical component of IICDC, RRG’s capitalization is the explicit support and capital supplementation provided to the company in the form of a fully funded letter of credit, which meets the District of Columbia’s Department of Insurance, Securities and Banking (DISB) requirements for equity treatment, issued in favor of IICDC, RRG and drawn on a highly rated bank with a domestic presence.
IICDC, RRG benefits from a strong niche market focus derived from the 13 years of experience gained with this book of business from a commonly owned managing general agent that has been placing this business in the insurance marketplace for insureds in the entertainment industry. Management over a number of years has built strong working relationships throughout the industry. The insurance program provides general liability, liquor liability and excess coverage to segments of the entertainment industry.
IICDC, RRG has met A.M. Best’s stringent requirements for new company formations. The company’s ratings are a reflection of its ability to meet A.M. Best’s strict capitalization requirements, which mandate a more conservative level of risk-based capital to support its ratings.
Concurrently, A.M. Best has withdrawn the financial strength rating (FSR) of A- (Excellent) and issuer credit rating (ICR) of “a-” and assigned a NR-5 (Not Formally Followed) to the FSR and a “nr” to the ICR of Indemnity Reinsurance Corporation of DC, Inc. (IRC), a member of IIDC. All companies are domiciled in Washington, DC.
These rating actions follow the District of Columbia’s Department of Insurance, Securities and Banking’s October 1, 2009 final approval of the merger of IRC with and into its affiliate, IICDC, RRG.
In conjunction with the merger, IRC and IIDC were dissolved. All business will now be written through IICDC, RRG.
A.M. Best remains the leading rating agency of captive insurers rating a wide variety of more than 200 captives in the United States and throughout the world.
For current Best’s Ratings and independent data on the captive and alternative insurance market, please visit www.ambest.com/captive.
The principal methodologies used in determining these ratings, including any additional methodologies and factors, which may have been considered, can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.
A.M. Best Company
Analysts
Gale Guerra, MBA, 908-439-2200, ext. 5069
gale.guerra@ambest.com
or
Steven Chirico, CPA, 908-439-2200, ext. 5087
steven.chirico@ambest.com
or
Public Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com
