AM Best Assigns Issue Credit Rating to Greater New York Mutual Insurance Company’s Surplus Note

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has assigned a Long-Term Issue Credit Rating of “a” (Excellent) to the $110 million, 7.75% surplus notes, due 2044, issued by Greater New York Mutual Insurance Company (GNY) (New York, NY). The outlook assigned to this Credit Rating (rating) is stable. The Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” (Superior) for GNY and its subsidiaries remain unchanged.

The ratings of GNY reflects its balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. GNY currently does not carry any other debt, and there is no recent history of debt.

GNY has successfully grown its surplus through strong earnings over the last five years; however, in the last several years, the rate of premium growth has outpaced the rate of capital growth leading to higher premium leverage. The surplus notes are intended to support the company’s capital in anticipation of further premium growth and provide an additional layer of protection for catastrophic events, as well as enhance GNY’s financial flexibility. The proceeds from the notes will be invested by GNY’s fixed income managers in line with the rest of the company’s investment portfolio. Following the surplus notes issuance, the financial leverage at GNY will be well within AM Best’s guidelines for the rating and the interest coverage is expected to be strong.

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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Michael Cantalino
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Al Slavin
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Source: AM Best