OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best has assigned a Financial Strength Rating (FSR) of A-
(Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a-”
to Blue Ridge Indemnity Company (Blue Ridge) (headquartered in
Jacksonville, FL). The outlook assigned to these Credit Ratings
(ratings) is stable. Concurrently, A.M. Best has affirmed the FSR of A-
(Excellent) and the Long-Term ICRs of “a-” of the rated operating
subsidiaries of Fortegra Financial Corporation (Fortegra)
(headquartered in Jacksonville, FL). Fortegra is a wholly owned
subsidiary of Tiptree Inc. [NASDAQ:TIPT]. The property/casualty
operating subsidiaries of Fortegra include Lyndon Southern Insurance
Company (Wilmington, DE), Insurance Company of the South
(Athens, GA), Response Indemnity Company of California (Redondo
Beach, CA) and Blue Ridge, which operate under an intercompany pooling
agreement and are collectively referred to as Fortegra P&C Group.The life/health operating subsidiaries of Fortegra include Life
of the South Insurance Company(Athens, GA), Bankers Life of
Louisiana(Marksville, LA) and Southern Financial Life Insurance
Company(Scottsville, KY), which are collectively referred to as the Life
of the South Group. The outlook of these ratings isstable.
The ratings of Fortegra P&C Group reflect its balance sheet strength,
which A.M. Best categorizes as very strong, as well as its adequate
operating performance, neutral business profile and appropriate
enterprise risk management (ERM).
Fortegra P&C Group’s balance sheet strength is reflective of its
strongest level of risk-adjusted capitalization, prudent investment
portfolio and comprehensive reinsurance program. Partially offsetting
these positive factors are the substantial reliance on third-party
reinsurance to provide capacity, which is demonstrated by its extremely
high ceded underwriting leverage, somewhat mitigated by the use of
collateral and modest loss reserve volatility.
Fortegra P&C Group’s operating performance is categorized as adequate.
The group has produced solid operating earnings over the past five
years, primarily driven by profitable underwriting results coupled with
growing investment earnings. The group’s business profile is considered
neutral due to its solid geographic and product spread of risk. A.M.
Best acknowledges the appropriate ERM program for the Fortegra P&C Group
organization, as it has developed a formalized process with risk
identification, management and mitigation.
Blue Ridge’s ratings reflect its participation in the group’s
reinsurance pooling agreement, being fully integrated with shared
underwriting systems, operations, and management.
The ratings of the Life of the South Group reflect its balance sheet
strength, which A.M. Best categorizes as strong, as well as its adequate
operating performance, neutral business profile and appropriate ERM.
The ratings of the Life of the South Group acknowledge its strong
consolidated balance sheet strength that includes the strongest level of
risk-adjusted capitalization. The ratings also recognize the group’s
adequate net operating performance, derived primarily from its
profitable credit life and credit accident and health businesses, and
stable premium trends. A.M. Best believes the group may be challenged to
sustain and improve its net operating performance given the challenges
of the persistent low interest rate environment and the expense strains
expected from anticipated new business growth. The Life of the South
Group’s business profile is neutral with good market positioning for its
lines of business, although the products are concentrated in credit life
and health offerings. Life of the South Group’s ERM is managed across
Fortegra’s operations and is considered appropriate.
This press release relates to Credit Ratings that have been published
on A.M. 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 A.M. Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and A.M. Best press releases, please view Guide
for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating
Action Press Releases.
A.M. Best is the world’s oldest and most authoritative insurance
rating and information source. For more information, visit www.ambest.com.
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
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A.M. Best
Brian O’Larte, +1-908-439-2200, ext. 5138
Director—P/C
brian.o'larte@ambest.com
or
Richard
Francis, +1-908-439-2200, ext. 5152
Senior Financial
Analyst—L/H
richard.francis@ambest.com
or
Christopher
Sharkey, +1-908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim
Peavy, +1-908-439-2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com
Source: A.M. Best