AM Best Assigns Credit Ratings to At-Bay Specialty Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to At-Bay Specialty Insurance Company (At-Bay) (Delaware). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect At-Bay’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

At-Bay’s balance sheet strength is supported by its strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), conservative investment portfolio, solid liquidity and low underwriting leverage that is projected over the next five years.

At-Bay’s adequate operating performance assessment is primarily based on the company’s ability to execute its strategic business plan and meet forecasted operating results throughout the five-year forecast period ending 2027. Solid results are expected during this period, primarily driven by underwriting and investment income supporting the company’s surplus growth. At-Bay is anticipating premium growth over this period due to the rapidly growing cyber insurance market.

At-Bay’s business profile is assessed as limited, reflecting the company’s position as a fairly new company primarily concentrated on writing cyber insurance. The company is eligible to write business in all 50 states on a surplus lines basis. At-Bay’s primary product of excess & surplus cyber will be offered to small-and medium-size businesses in the United States. The company has chosen to go to market with a distribution model that uses wholesale brokers and digital partners that are focused on offering the most reliable service to their policyholders. At-Bay’s executive management team has extensive experience and expertise in the areas of cybersecurity, insurance, engineering and technology.

AM Best considers the company’s ERM to be appropriate. At-Bay addresses cyber risk throughout the lifetime of a policy with its active risk management (ARM) approach. ARM includes frequent scans to detect policyholder vulnerabilities, an in-house security team to help insureds and their brokers resolve issues before they are exploited, and procedures and policies that prioritize active risk mitigation. Active catastrophe management is also in place to identify potential cyber catastrophe events and quantify portfolio exposure risks. In addition, At-Bay has a reinsurance program in place consisting of a highly rated diverse panel of reinsurance participants to protect the company from a potential volatile line of business.

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 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.

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Anthony Molinaro
Senior Financial Analyst

+1 908 439 2200, ext. 5608

[email protected]

Fred Eslami
Associate Director

+1 908 439 2200, ext. 5406

[email protected]

Christopher Sharkey
Associate Director, Public Relations

+1 908 439 2200, ext. 5159

[email protected]

Al Slavin
Senior Public Relations Specialist

+1 908 439 2200, ext. 5098

[email protected]

Source: AM Best