UK Markets close in 6 hrs 57 mins

AM Best Assigns Credit Ratings to Sutton Specialty Insurance Company and Sutton National Insurance Company

·3-min read

AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of "a-" to Sutton Specialty Insurance Company and Sutton National Insurance Company. The outlook assigned to these Credit Ratings (ratings) is stable. Sutton Specialty and Sutton National collectively are referred to as Sutton National Group. Both companies are domiciled in Oklahoma City, OK.

The ratings reflect Sutton National Group’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The balance sheet assessment of very strong is based on initial capital capacity that meets AM Best’s guidelines for newly formed companies, which is expected to support risk-adjusted capital levels through a five-year startup period. Expected capital levels are measured against reinsurance recoverable amounts, including acknowledging credit risk and reinsurance dependence factors. AM Best assesses Sutton National Group’s operating performance as adequate based on the group’s clearly defined business plan that considers a level of execution and implementation risk for a newly formed entity. The group’s business profile is viewed as limited, accounting for factors that include the period of time needed to establish a brand and market position and serving as a fronting/transformer carrier in an increasingly competitive space. The group’s ERM structure captures clearly defines risk appetite and tolerance statements, targeting specific concerns with the business profile. The comprehensive framework leverages the industry experience of the management team.

Negative rating actions would occur if risk-adjusted capital is insufficient for needs, if actual operating results fall adversely outside the initial projections or if risk appetite and tolerance levels prove to be inadequate for the group's profile.

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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201020005926/en/

Contacts

Robert Raber
Associate Director
+1 908 439 2200, ext. 5696
robert.raber@ambest.com

Christopher Sharkey
Manager, Public Relations

+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Greg Williams
Senior Director
+1 908 439 2200, ext. 5815
greg.williams@ambest.com

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644
james.peavy@ambest.com