AM Best Assigns Credit Ratings to 7710 Insurance Company, a New Member of Benchmark Insurance Group

Rhea-AI Summary

AM Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of 'a' to 7710 Insurance Company based in Summerton, SC. The ratings outlook is stable. As a new member of Benchmark Insurance Group, 7710 is a wholly owned subsidiary of Benchmark Holding Company, ultimately owned by Trean Insurance Group, Inc. [NASDAQ: TIG]. The firm enables rate flexibility and broader markets for specialty workers’ compensation. The group’s ratings indicate strong balance sheet strength and operational performance.

Positive

• Assigned a Financial Strength Rating of A (Excellent) by AM Best.
• Long-Term Issuer Credit Rating of 'a' reflects strong operational performance.
• Strategic addition to Benchmark Insurance Group enhances specialty workers’ compensation focus.

Negative

• None.

AM Best has assigned a Financial Strength Ratings of A (Excellent) and a Long-Term Issuer Credit Rating of “a” to 7710 Insurance Company (7710) (Summerton, SC). The outlook assigned to the Credit Ratings (ratings) is stable. 7110 is a newly added member of Benchmark Insurance Group and a wholly owned subsidiary of Benchmark Holding Company, which is ultimately owned by Trean Insurance Group, Inc. [NASDAQ: TIG]. The company is being afforded the group’s ratings via a 100% quota share reinsurance contract with Benchmark Insurance Company. The ratings of the other members of the group are not affected by 7710’s rating assignment.

7710 has been made a member of BIG due to its strategic importance to the group. The company provides rate flexibility and additional markets, allowing the group to expand its specialty workers’ compensation focus. 7710 is reinsured by its lead rating unit, Benchmark Insurance Company, and shares common executive management and operational capabilities.

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

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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

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 © 2021 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/20210413005867/en/

FAQ

What is the significance of AM Best assigning an A rating to 7710 Insurance Company?

The A rating indicates that 7710 Insurance Company has excellent financial strength, which is beneficial for its operations and credibility in the insurance market.

What impact does 7710's rating have on Trean Insurance Group, Inc. [NASDAQ: TIG]?

The financial strength rating enhances the overall reputation of Trean Insurance Group by showing its ability to support its subsidiaries.

How does 7710 Insurance Company improve Benchmark Insurance Group's market position?

7710 provides rate flexibility and access to additional markets, allowing Benchmark Insurance Group to broaden its specialty workers' compensation focus.

Is the outlook for 7710 Insurance Company positive or negative?

The outlook assigned to 7710's Credit Ratings is stable, indicating a positive expectation for its continued performance.

What is the role of the quota share reinsurance contract for 7710?

The quota share reinsurance contract with Benchmark Insurance Company allows 7710 to align with the group's strong financial ratings and share operational capabilities.