AM Best Comments on Credit Ratings of First Indemnity of America Insurance Company Following Sale Announcement

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has commented that the Credit Ratings (ratings) of First Indemnity of America Insurance Company (FIA) remain unchanged following the Aug. 6, 2024, announcement of an agreement whereby the company will be sold by its parent, ABSCO Ltd. Corporation, to Palomar Holdings, Inc. [NASDAQ: PLMR], subject to customary regulatory approval. The sale is expected to close in late 2024 or early 2025.

FIA has a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent). The outlooks of these ratings are stable.

The transaction is not anticipated to have a material impact on the current rating-related assessments of FIA. AM Best will continue to monitor developments as the transaction works through the regulatory approval process. Under the sale agreement, senior management will stay in place at FIA and continue to maintain its operating fundamentals as a monoline surety writer.

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.