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A.M. Best Assigns Credit Ratings to Journey Insurance Company

September 20, 2018

OLDWICK, N.J.--(BUSINESS WIRE)--Sep 20, 2018--A.M. Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” to Journey Insurance Company (Journey) (St. Petersburg, FL). The outlook assigned to these Credit Ratings (ratings) is stable.

The assigned ratings reflect Journey’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). The expected level of risk-adjusted capitalization supports the underwriting, credit and investment risks of the company. The company’s business plans consist of writing property coverage in Florida, Texas and South Carolina. While strict risk selection criteria and underwriting guidelines are in place, the concentration of property business and corresponding dependence on reinsurance are significant risk factors. Although untested, sophisticated pricing is in place to support profitable growth.

Journey is collectively owned by United Insurance Holdings Corp. (United) and R.J. Kiln & Co. (No. 3) Limited, a subsidiary of Tokio Marine Kiln Group Limited, with each contributing cash in exchange for equity interest. United has a majority ownership and will provide strategic administrative and operational support as it pertains to underwriting, ERM, claims, leadership and other functions. The ratings and outlooks consider the substantial support and proven track record of United. Accordingly, the successful execution of Journey’s business development plans is dependent on its strategic business partners, including an external managing general agent (MGA) for commercial risks. Additionally, these ratings reflect Journey’s comprehensive reinsurance program, which is designed to provide horizontal and vertical protection against severe weather-related events. Based on management’s near-term financial plan, the projected net probable maximum loss comprises a modest amount of surplus.

Future positive rating actions could occur for Journey following demonstrated successful implementation of its business plans, as well as several periods of profitable results that compare favorably to composite averages. Negative rating actions could result if the operational and financial plans anticipated by management do not materialize and result in a decline in risk-adjusted capitalization. In addition, negative rating action also could occur if the relationship or support provided by the majority parent undergoes a material change.

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 web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view .

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit for more information.

Copyright © 2018 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/20180920005924/en/

CONTACT: A.M. Best

Christopher Draghi

Senior Financial Analyst

+1 908 439 2200, ext. 5043

chris.draghi@ambest.com

or

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

or

Michelle Baurkot

Director

+1 908 439 2200, ext. 5314

michelle.baurkot@ambest.com

or

Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: UNITED STATES NORTH AMERICA FLORIDA NEW JERSEY SOUTH CAROLINA TEXAS

INDUSTRY KEYWORD: PROFESSIONAL SERVICES FINANCE INSURANCE

SOURCE: A.M. Best

Copyright Business Wire 2018.

PUB: 09/20/2018 04:49 PM/DISC: 09/20/2018 04:49 PM

http://www.businesswire.com/news/home/20180920005924/en

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