AM Best Assigns Issue Credit Rating to Victor Insurance Exchange’s Surplus Notes

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has assigned a Long-Term Issue Credit Rating of “bbb” (Good) to the $102.5 million, 6% surplus notes, due June 2038, issued by Victor Insurance Exchange (Wilmington, DE). The outlook assigned to this Credit Rating (rating) is stable.

As a start-up organization in 2023, the exchange utilized the surplus notes provided by its financial sponsor, Gallatin Point Capital, as its initial capitalization. Over the first five years of operation, capital is expected to increase largely driven by member subscription fees based on the business plan.

Victor Insurance Exchange is a reciprocal insurance exchange domiciled in Delaware, which is owned by the policyholders (subscribers) and is managed by Victor’s attorney-in-fact. The attorney-in-fact is owned jointly by the financial sponsor, Gallatin Point Capital, and the strategic sponsor, Marsh McLennan Companies’ managing general underwriter operations, Victor Holdings. The exchange provides coverage to small commercial and coastal residents, including fire, water leakage, hail and straight-line wind as well as earthquake coverage.

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.