A.M. Best Co. has assigned an issuer credit rating (ICR) of “bb” to North Pointe Holdings Corp. and has upgraded the financial strength rating (FSR) to B++ (Very Good) from B+ (Very Good) of its subsidiary, North Pointe Insurance Company (NPIC), both of Southfield, Mich. NPIC has also been assigned an ICR of “bbb”. All ratings have stable outlooks.
These rating actions take into consideration the completed initial public offering (IPO) of NPHC in September 2005 and its beneficial impact on overall financial flexibility, holding company leverage, liquidity and improved statutory risk-adjusted capitalization of both NPIC and NPCIC. Net proceeds from the IPO were approximately $42.4 million, about $10.0 million of which has been contributed to NPIC, with another $5.0 million infused into NPCIC.
The ratings also acknowledge NPHC’s third-quarter earnings announcement, in which the company reported pre-tax incurred losses of $5.4 million (net of reinsurance) as a result of Hurricanes Dennis, Katrina and Rita.
For more information, visit A.M. Best’s Web site at www.ambest.com.
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