Professional liability insurance firm garners A- rating

One professional liability insurance firm recently garnered an A- (Excellent) financial strength rating, according to A.M. Gest Co, a ratings agency.

In addition to their high financial strength, business insurance firm AmerInst Insurance Group also earned an a- issue credit rating.  For both ratings the outlook seems to be stable.

The ratings are reflective of the business liability insurance firm’s experienced management team and strong capitalisation.  Additionally the agency stated that the insurer’s niche expertise as a professional indemnity insurance reinsurer aided in the determination as well.

Some of the positive rating factors for AmerInst were offset partially due to the firm’s narrow underwriting risk spread.  Additionally there is a minimum level of risk associated with implementing its new business plan.  Mr Best stated that AmerInst was continuing to employ a more rerserving methodology to go along with its new business plan. The new methodology differs from th firm’s practice of booking to a higher loss ratio that the primary carrier for the policy.

A.M. Best’s requirements for higher capitalisation have been met by AmerInst.  This was accomplished by mandating a more conservative risk-based capital level for its new business plan.  AmerInst will continue to be monitored by A.M. Best as the firm continues to implement its business plan. If the plan deviates materially in terms of earning, risk profile, capitalisation could lead to pressure to rate the firm negatively.

AmerInst Insurance Group was founded in 1998.  It operates out of Windsor Place in Hamilton.  Its subsidiary, AmerInst Insurance Company, primarily remains engaged in US-based reinsurance business ventures.  The firm acts as an agent for endorsing, non-renewing, cancelling, issuing, binding, quoting, underwriting, and soliciting professional liability insurance cover for both lawyers and accountants.

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