AM Best Assigns Credit Ratings to Fortegra Europe Insurance Company Limited

December 21, 2018

LONDON--(BUSINESS WIRE)--Dec 21, 2018--AM Best has assigned a Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” to Fortegra Europe Insurance Company Limited (FEI) (Malta). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect FEI’s balance sheet strength, which AM Best categorises as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. FEI’s ratings benefit from the support of its parent, Fortegra Financial Corporation (FFC) group.

FEI is a Malta-incorporated start-up subsidiary of FFC, a U.S. insurance group specialising in credit and warranty business. The company was established in 2018 to write warranty and specialty motor insurance business in several European markets.

The company’s initial risk-adjusted capitalisation is assessed at the strongest level, according to Best’s Capital Adequacy Ratio (BCAR), supported by original capital of EUR 6.5 million. Risk to the company’s balance sheet is limited as invested assets are allocated to money market funds. AM Best expects the company’s prospective capital position to weaken over the next three years as it assumes risk; however, risk-adjusted capitalisation is expected to remain at the strongest level, as measured by BCAR, supported by a further capital injection from FFC during the start-up phase.

FEI is expected to use retail intermediaries and brokers to distribute its products. FEI will benefit from the underwriting expertise of the group, which has a long-term record of profitable insurance results in the U.S. The group has a strong understanding of products that will be underwritten by FEI and has acquired European industry expertise to support its new operation. FEI’s significant reliance on a number of outsourcing partners represents a source of risk, which it aims to mitigate through careful selection, management and monitoring.

The ratings of FEI benefit from the support of its parent, FFC. FEI is expected to play a strategically important role in expanding the operations of FCC into Europe. FEI shares branding and management with its parent. FFC’s support is demonstrated by the initial capitalisation of FEI and the expectation that it will provide further capital to support the company during the five-year start-up phase.

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 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 AM Best press releases, please view .

AM 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.

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CONTACT: Tim Prince

Director, Analytics

+44 20 7397 0287

timothy.prince@ambest.comMahesh Mistry

Senior Director, Analytics

+44 20 7397 0325

mahesh.mistry@ambest.comChristopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.comJim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644





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PUB: 12/21/2018 11:05 AM/DISC: 12/21/2018 11:05 AM


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