AM Best Places Credit Ratings of Castle Key Group Members Under Review With Negative Implications

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has placed under review with negative implications the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of the members of Castle Key Group (Castle Key) (headquartered in Largo, FL). (See below for a detailed listing of the companies.)

The Credit Rating (ratings) have been placed under review with negative implications due to a material deterioration in its surplus position as a result of challenging personal property insurance conditions in Florida, including higher loss severity, catastrophe-related losses and the increased cost of reinsurance. Castle Key management has taken significant corrective underwriting actions and is actively engaged in discussions with state regulators on appropriate capitalization levels. Given the uncertainty regarding the placement of its 2023 reinsurance program and future capital position, the ratings will remain under review until AM Best can fully analyze the impact of these actions.

The FSR of B+ (Good) and the Long-Term ICRs of “bbb-” (Good) have been placed under review with negative implications for following members of the Castle Key Group:

• Castle Key Insurance Company
• Castle Key Indemnity Company
• Encompass Floridian Insurance Company
• Encompass Floridian Indemnity Company

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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Kate Steffanelli
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Christopher Sharkey
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Al Slavin
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Source: AM Best