AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of "a-" to Southlake Specialty Insurance Company (SSIC) and its subsidiary, Westlake Specialty Insurance Company. The outlook assigned to these Credit Ratings (ratings) is stable. Both companies are domiciled in Westlake, TX, and collectively are referred as Southlake.
The ratings reflect Southlake’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile, appropriate enterprise risk management and the execution risk faced by any startup organization.
The ratings also consider Southlake’s excellent projected risk-adjusted capitalization and sound business strategy, which capitalizes on Southlake’s expertise in the commercial auto insurance market segment. Southlake will operate as a fronting insurer; SSIC will operate on an excess and surplus basis, with Westlake providing admitted paper when needed and for specific geographic and product lines. Business will be generated initially through its affiliation with NTA Underwriters as Southlake expands its relationships with unaffiliated MGAs. Southlake’s senior management team has extensive experience and a solid track record in the commercial auto marketplace. AM Best believes this experience, as well as management’s relationships with distribution sources, will be key to Southlake quickly gaining traction in its targeted market.
Southlake expects to begin operations in the second quarter of 2021.
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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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