AM Best Affirms Performance Assessment of First Indemnity Insurance Agency, Inc.

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has affirmed the Performance Assessment (assessment) of PA-3 (Strong) of First Indemnity Insurance Agency, Inc. (First Indemnity) (Boston, MA). The outlook of the assessment is stable.

The assessment reflects First Indemnity’s strong underwriting capabilities, strong governance and internal controls, strong financial condition, strong organizational talent and its strong depth and breadth of relationships.

First Indemnity is licensed as an agent for select complementary coverage or direct chosen classes of risk. As a managing general agent (MGA), First Indemnity offers professional liability products through four active programs: Lawyers Professional Liability, Lawyers Excess Professional Liability, Accountants Professional Liability and Miscellaneous Professional Liability. Strong underwriting capabilities are supported by the company’s long-standing presence and expertise in the legal professional liability sector. Despite participation in additional programs, First Indemnity’s business remains concentrated in lawyers’ professional liability. Reported underwriting results have generally been favorable, supported by the company’s underwriting controls.

AM Best considers First Indemnity’s governance and internal controls strong given the integration of its core systems and its interface with carrier partners, which supports efficient and accurate processing fostering alignment of interest between carrier and MGA. The company implements clear operational policies and procedures, including formal business continuity and disaster recovery frameworks mitigating business disruption risk.

First Indemnity’s financial condition is supported by a capital efficient model and backed by sustainable sources of income and disciplined expense management contributing to overall profitability. The majority of insurance risk is placed externally, and limited underwriting exposure is retained. However, limited expansion plans and data discrepancies remain a moderating factor.

AM Best assesses First Indemnity’s organizational talent as strong, marked by extensive industry experience across executive leadership. First Indemnity’s organizational structure reflects a compact structure with clear and direct reporting and operational responsibilities leading to low employee turnover.

While the company has experienced volatility within its capacity relationships, its exhibited ability to involve and replace relationships with reputable capacity providers mitigates risk. Business is diversified geographically with the company providing coverage to all 50 states, however, concentration in a singular program is viewed as a limiting factor.

This press release relates to Performance Assessments that have been published on AM Best’s website. For all information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the Performance Assessments referenced in this release, please see AM Best’s website. For additional information regarding the use and limitations of Performance Assessments, please view Guide to Best’s Performance Assessments for Delegated Underwriting Authority Enterprises. 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.