AM Best Assigns Credit Ratings to Ocean Marine Indemnity Company

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has assigned a Financial Strength Rating of B+ (Good) and a Long-Term Issuer Credit Rating of “bbb-” (Good) to Ocean Marine Indemnity Company (OMI) (Metairie, LA). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect OMI’s balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management (ERM).

OMI is a Louisiana-domiciled ocean marine insurer that writes hull & machinery (H&M) and protection & indemnity (P&I) coverage for commercial maritime operators, primarily in Louisiana and the Gulf Coast. The company derives substantially all of its business through program and fronting arrangements, with operating functions provided by its parent, Gulf Coast Marine, LLC.

OMI’s strong balance sheet strength assessment is supported by its risk-adjusted capitalization being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The assessment also reflects the company’s conservative investment portfolio, solid liquidity, favorable leverage metrics and reinsurance program, which provides meaningful protection against catastrophe and large-loss volatility. Partially offsetting these strengths are OMI’s modest absolute capital base, historical volatility in surplus growth and cash flow metrics, and dependence on key fronting and reinsurance relationships.

AM Best views OMI’s operating performance as marginal. The assessment reflects historically volatile underwriting results and profitability metrics that lag the industry composite. While the company reported favorable underwriting results in 2024, results deteriorated in 2025, driven by underwriting losses and adverse development in prior P&I pool years. AM Best expects the company’s operating performance to remain pressured over the near term, although recent underwriting actions, including more disciplined risk selection, pricing and claims handling, may support improved results prospectively. Investment income is expected to continue to contribute positively to overall earnings, though at a modest level given the conservative nature of the investment portfolio.

OMI’s business profile is assessed as limited, reflecting its small scale of operations, geographic concentration in Louisiana and niche focus in the marine services sector. The company’s business profile benefits from its experienced management team, specialized expertise in the brownwater marine market and established distribution relationships. These strengths are partially offset by product concentration in H&M and P&I, limited diversification, and reliance on key program and fronting arrangements.

AM Best assesses OMI’s ERM as appropriate for the size and scope of its operations. The assessment reflects management’s oversight of underwriting, reserving, catastrophe and reinsurance risks, supported by external actuarial review, stress testing and reinsurance protection. The company’s concentrated risk profile, P&I reserve volatility, catastrophe exposure and dependence on key counterparties remain important areas for ongoing monitoring.

The stable outlooks reflect AM Best's expectation that OMI's rating fundamentals will remain consistent over the intermediate term. Balance sheet strength is expected to remain strong, supported by the strongest level of risk-adjusted capitalization, as measured by BCAR, and operating performance is expected to remain aligned with similarly assessed companies at the marginal level. OMI's business profile is expected to remain limited, reflecting its geographic concentration in Louisiana and niche focus on the marine services sector, while ERM is expected to remain appropriate for the size and scope of its operations.

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.