A.M. Best Co. has placed under review with negative implications the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of WRM America Indemnity Company (WRMAI) (Uniondale, NY). These rating actions follow the recent announcement by WRMAI of the transaction involving its ultimate parent, The Wright Insurance Group, LLC (TWIG) and Brown & Brown, Inc. (B&B) [NYSE: BRO].
Under the terms of the transaction and subject to regulatory approvals, B&B will be acquiring 100% of the membership interests of TWIG and its subsidiaries, with the exception of WRMAI.
The ratings of WRMAI reflect its solid capitalization, experienced management team and strong claim and risk management programs. Partially offsetting these positive rating factors is the execution risk associated with the expansion of an existing single-state platform into additional states within the United States. Additional rating factors are the company's fundamental business strategies, which include providing stable insurance coverage in its niche education market coupled with high quality service for its insureds.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.