AM Best Assigns Credit Ratings to New Horizon Insurance Company
2024年7月25日 - 12:42AM
ビジネスワイヤ(英語)
AM Best has assigned a Financial Strength Rating of B++
(Good) and a Long-Term Issuer Credit Rating of “bbb+” (Good) to New
Horizon Insurance Company (NHIC) (Houston, TX). The outlook
assigned to these Credit Ratings (ratings) is stable.
The ratings reflect NHIC’s balance sheet strength, which AM Best
assesses as very strong, as well as its adequate operating
performance, limited business profile and appropriate enterprise
risk management (ERM).
NHIC began operations in September of 2016, started writing
business during the first quarter of 2017, and has continued to
grow its book of business through the first quarter of 2024. The
company is a Texas-domiciled property/casualty insurer, licensed to
write business in Texas, New Mexico, Arizona and California. The
core business is providing coverage in the United States to
vehicles with cross-border operations between Mexico and the United
States. NHIC is a wholly owned subsidiary of NHIC Holdings, LLC, a
privately held Texas company that also owns three other entities.
Those entities include managing general agency Green Road Services,
LLC, Viridi Via Technologies, LLC, the technology arm of Green Road
Services, LLC, and New Horizon IC S DE RL DE CV., a Mexico
subsidiary that services accounts and employs support staff in
Mexico. Green Road Services, LLC underwrites 100% of NHIC’s book of
business and handles 100% of its claims.
NHIC’s balance sheet strength is well-supported by its very
strong level of risk-adjusted capitalization, as measured by Best’s
Capital Adequacy Ratio (BCAR). Additional positive factors include
the company’s conservative underwriting leverage, favorable
liquidity measures and consistent policyholder surplus
appreciation. However, the company has elevated ceded leverage
measures and has reported adverse reserve development
historically.
The company’s average operating, and combined ratios compare
very favorably with its composite and are driven by profitable
underwriting results and enhanced by investment income. The company
has been on a consistent upward trajectory since beginning
operations, and AM Best expects positive operating performance to
continue with less variability.
AM Best assesses NHIC’s business profile as limited due to the
company’s limited product offerings and highly concentrated area of
business. However, the company maintains a strong brand and name
recognition as the market leader of an otherwise small niche.
New Horizon’s ERM, which AM Best assesses as appropriate,
maintains a formalized ERM program with risk tolerances and
mitigation strategies. NHIC maintains sufficient reinsurance
protection for longer-tail weather events.
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 Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please
view Guide to Best's Credit Ratings. For information
on the proper use of Best’s Credit Ratings, Best’s Performance
Assessments, Best’s Preliminary Credit Assessments and AM Best
press releases, please view Guide to Proper Use of Best’s
Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London,
Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more
information, visit www.ambest.com.
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Justin Aimone Financial Analyst +1 908 882
1595 justin.aimone@ambest.com
Janet Hernandez Senior Financial Analyst +1 908
882 1890 janet.hernandez@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com