A.M. Best Assigns Ratings to PrimeOne Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has assigned a financial strength rating of B+ (Good) and issuer credit rating of “bbb-” to PrimeOne Insurance Company(PrimeOne) (Farmington Hills, MI). The outlook assigned to both ratings is stable.

The ratings of PrimeOne largely reflect its adequate initial capitalization and the track record of the senior management team in critical functional areas. The ratings also reflect A.M. Best’s expectation concerning the company’s ability to successfully execute its business plan targeting property, general liability and liquor liability coverage for hospitality risks, restaurants, bars, taverns, convenience stores and other similar classes in Michigan. Upon A.M. Best’s review, PrimeOne’s business plan appeared reasonable, considering prevailing market conditions.

The ratings also acknowledge the considerable challenges and execution risk associated with a start-up company. While PrimeOne hopes to take advantage of some potential market dislocation in Michigan concerning its targeted classes of business, it will still have to compete with other more established competitors for the opportunity to secure an appreciable share of that business.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; and “A.M. Best Ratings & the Treatment of Debt.” Methodologies can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2010 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best Company
David Blades, 908-439-2200, ext. 5422
Senior Financial Analyst
david.blades@ambest.com
or
Joseph Roethel, 908-439-2200, ext. 5630
Assistant Vice President
joseph.roethel@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

Source: A.M. Best Co.