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A.M. Best Removes From Under Review Ratings of Wright National Flood Insurance Company

May 21, 2014

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has removed from under review with developing implications and affirmed the financial strength rating of A- (Excellent) and issuer credit rating of ďa-Ē of Wright National Flood Insurance Company (WNFIC) (San Antonio, TX). The outlook assigned to both ratings is stable. The rating actions follow the acquisition of WNFICís ultimate parent, The Wright Insurance Group, LLC (TWIG) by Brown & Brown, Inc.(B&B) [NYSE:BRO].

Under the terms of the transaction, B&B acquired 100% of the membership interests of TWIG and its subsidiaries, with the exception of WRM America Indemnity Company(Uniondale, NY).

The ratings of WNFIC reflect its adequate risk-adjusted capitalization and relatively favorable operating results, as well as governmental support. Offsetting these positive rating factors are the potential concentration of risk derived from excess flood policies, albeit small in nature, and changes in the macroeconomic environment.

WNFIC derives significant revenue and fee-based income from its book of non-risk-bearing National Flood Insurance Program (NFIP) business, as well as from its excess flood coverage. These factors are expected to significantly contribute to WNFICís overall profitability. Upon completion of the proposed transaction with B&B, WNFIC is expected to continue its NFIP program.

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

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit

Copyright © 2014 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best Company, Inc.

Fred Eslami, 908-439-2200, ext. 5406

Senior Financial Analyst


Steven Chirico, 908-439-2200, ext. 5087

CPA, Assistant Vice President


Rachelle Morrow, 908-439-2200, ext. 5378

Senior Manager, Public Relations


Jim Peavy, 908-439-2200, ext. 5644

Assistant Vice President, Public Relations

Source: A.M. Best

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Source: Business Wire

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