AM Best Affirms Credit Ratings of Members of Spinnaker Insurance Group

Rhea-AI Summary

AM Best has confirmed the Financial Strength Rating of A- (Excellent) and Long-Term Issuer Credit Ratings of 'a-' (Excellent) for Spinnaker Insurance Group. The ratings indicate strong balance sheet strength and adequate operating performance. Notably, Hippo Holdings Inc. (HIPO) acquired Spinnaker Insurance Company on August 31, 2020. The outlook remains stable, reflecting expectations of continued profitability and strong capitalization to support premium growth.

Positive

• Affirmation of Financial Strength Rating A- and Long-Term Issuer Credit Ratings a- signifies robust financial health.
• Spinnaker demonstrates strong risk-adjusted capitalization as per AM Best's Credit Adequacy Ratio.
• Stable outlook suggests expectations of continued profitability and supportive balance sheet strength.

Negative

• Limited business profile noted by AM Best could imply vulnerability to market changes.

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Spinnaker Insurance Company and its 100% reinsured subsidiaries, Spinnaker Specialty Insurance Company and Mainsail Insurance Company, collectively referred to as Spinnaker Insurance Group (Spinnaker). All companies are headquartered in Bedminster, NJ. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Spinnaker’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The ratings also reflect Spinnaker’s strongest level of risk-adjusted capitalization, as measured by Best’s Credit Adequacy Ratio (BCAR), favorable operating performance trend in recent years and experienced management team. The ultimate parent company is Hippo Holdings Inc. (Hippo) (HIPO: NYSE), which acquired Spinnaker Insurance Company on Aug. 31, 2020. The ratings further reflect the financial and operational benefits that Spinnaker has received operating as part of the Hippo organization, including demonstrated capital contributions in support of planned premium growth, combined with the application of best-in-class technology.

The stable outlooks reflect AM Best’s expectation that Spinnaker’s operating performance will remain profitable over the near term, and that its balance sheet strength will remain supportive of its current ratings level and planned premium growth.

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221202005358/en/

Gordon McLean

Senior Financial Analyst

+1 908 439 2200, ext. 5304

gordon.mclean@ambest.com

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Raymond Thomson, CPCU, ARe, ARM

Associate Director

+1 908 439 2200, ext. 5621

raymond.thomson@ambest.com

Al Slavin

Senior Public Relations Specialist

+1 908 439 2200, ext. 5098

al.slavin@ambest.com

Source: AM Best

FAQ

What credit ratings did AM Best affirm for Hippo Holdings' Spinnaker Insurance Group?

AM Best affirmed a Financial Strength Rating of A- (Excellent) and Long-Term Issuer Credit Ratings of 'a-' (Excellent) for Spinnaker Insurance Group.

What is the outlook for Spinnaker Insurance Group according to AM Best?

The outlook for Spinnaker Insurance Group's credit ratings is stable, indicating expected continued profitability.

When did Hippo Holdings acquire Spinnaker Insurance Company?

Hippo Holdings acquired Spinnaker Insurance Company on August 31, 2020.

What does the stable outlook from AM Best reflect for Spinnaker Insurance?

The stable outlook reflects that Spinnaker's operating performance is expected to remain profitable in the near term.

How does AM Best assess Spinnaker's balance sheet strength?

AM Best assesses Spinnaker's balance sheet strength as very strong, contributing to its favorable credit ratings.