The ratings reflect BICIís solid stand-alone level of risk-adjusted capitalization as well as the extensive explicit support provided through quota share reinsurance agreements with Lloydís Syndicate 3623, which is managed by Beazley. BICI also benefits from third party credit risk protection provided by Beazley. Given the explicit capital support that is in place, BICI receives partial rating enhancement.
Partially offsetting these positive rating factors are the challenges BICI has faced in its initial years in operation while trying to establish itself in the very competitive specialty commercial insurance marketplace. These challenges led to BICI falling short of its projected premium production and/or profitability targets in prior years. Subsequently, these adverse results contributed to the company discontinuing unprofitable product offerings to improve operating performance. Despite these attenuating factors, BICIís underwriting results have been on par with other specialty commercial insurers. BICI also maintains a quality balance sheet, which is reflective of Beazleyís conservative investment and reserving philosophies. Going forward,
The methodology used in determining these ratings is Bestís Credit Rating Methodology, which provides a comprehensive explanation of A.M. Bestís rating process and contains the different rating criteria employed in the rating process. Bestís Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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