AM Best Places Credit Ratings of GeoVera Insurance Group Members Under Review With Developing Implications

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has placed under review with developing implications the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” (Excellent) of the members of GeoVera Insurance Group (GeoVera) (headquartered in Fairfield, CA), which operate under an intercompany reinsurance agreement. (See below for a listing of the companies.)

The Credit Ratings (ratings) of GeoVera have been placed under review with developing implications following the April 9, 2024, announcement that GeoVera Insurance Holdings, Ltd. has entered into a definitive agreement to sell its managing general agent (MGA) business to SageSure, a residential property catastrophe MGA, and to sell its insurance carriers to GeoVera Nova Holdings, Inc. (GeoVera Nova), a newly formed holding company. As part of the latter transaction, GeoVera Nova also will acquire SafePort Insurance Company, a SageSure producer. The transactions are subject to regulatory approval and other customary closing conditions and are expected to close in the fourth quarter of 2024.

The ratings will remain under review pending the close of the transaction and until AM Best can fully review the post-transaction details.

The FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) have been placed under review with developing implications for the following members of GeoVera Insurance Group:

• Coastal Select Insurance Company

• GeoVera Insurance Company
  
• GeoVera Reinsurance, Ltd.

• GeoVera Specialty Insurance 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 © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Robert Gabriel
Senior Financial Analyst

+1 908 882 1789

[email protected]

Adrienne Stark
Associate Director

+1 908 882 2336

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Christopher Sharkey
Associate Director, Public Relations

+1 908 882 2310

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Al Slavin
Senior Public Relations Specialist

+1 908 882 2318

[email protected]

Source: AM Best