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A.M. Best Assigns Ratings to Essentia Insurance [Professional Services Close - Up]

Proquest LLC

A.M. Best Co. has assigned a financial strength rating of A (Excellent) and issuer credit rating of "a+" to Essentia Insurance Company (Chesterfield, MO).

According to a release, the outlook assigned to both ratings is stable.

The ratings largely reflect the full rating enhancement afforded to Essentia given its recent acquisition by Markel Corp. (Glen Allen, VA) and the implicit as well as explicit support provided to Essentia by an affiliate, Evanston Insurance Company (Deerfield, IL), in the form of a 100 percent whole account quota share reinsurance agreement.

Effective January 2, 2013, Essentia was acquired by Markel from OneBeacon Insurance Group (Bermuda). Prior to the purchase, all prior-year liabilities were 100 percent reinsured by a OneBeacon subsidiary. Historically, Essentia ceded the majority of its business to OneBeacon Insurance Company. Essentia will continue to underwrite insurance exclusively for the Hagerty Insurance Agency and the Hagerty Classic Marine Insurance Agency (collectively known as Hagerty) throughout the United States. Hagerty is an insurance provider for classic vehicles and host to a network of classic car owners. Through Hagerty, Essentia offers insurance for classic cars, vintage boats, motorcycles and related automotive collectibles.

Any upward or downward revision in the ratings largely would be dependent on the ratings of Evanston. Negative rating actions also could result from lessening of support (implied or explicit) provided to Essentia by Markel and Evanston.

The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides an explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process.

A.M. Best Company is an insurance rating and information source.

More information:

www.ambest.com/ratings/methodology

www.ambest.com

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Copyright:(c) 2013 ProQuest Information and Learning Company; All Rights Reserved.
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