A.M. Best has maintained the under review with negative implications status on the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of WRM America Indemnity Company (WRMAI) (Uniondale, NY). The rating actions follow the acquisition of The Wright Insurance Group, LLC (TWIG), with the exception of WRMAI, by Brown & Brown, Inc. (B&B) [NYSE:BRO].
With WRMAI being the exception, 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. A.M. Best expects to finalize WRMAI’s ratings once its strategic plan is completed.
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.
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