AM Best Affirms Performance Assessment of MGA First Indemnity

October 1, 2025

AM Best has affirmed its Performance Assessment of PA-3 (Strong) of First Indemnity Insurance Agency, Inc. of Boston. AM Best said the outlook of the assessment is stable.

The ratings firm said its PA-3 assessment of the Massachusetts-based managing general agent (MGA) reflects First Indemnity’s “strong underwriting capabilities, strong governance and internal controls, strong financial condition, strong organizational talent and strong depth and breadth of relationships.”

AM Best cited First Indemnity’s overall scale and limited expansion plans and its concentration in a singular program as moderating factors.

First Indemnity offers professional liability products through four active programs: Lawyers Professional Liability, Lawyers Excess Professional Liability, Accountants Professional Liability, and Miscellaneous Professional Liability.

According to AM Best, the firm’s underwriting capability is supported by the company’s “long-standing presence and expertise in the legal professional liability sector underpinned through carrier relationships and risk selection.” AM Best added that despite participation in additional programs, earnings are meaningfully concentrated in a core line, which tempers the assessment.

AM Best introduced its Performance Assessments for Delegated Underwriting Authority Enterprises (DUAE) in response to the rapid growth of third-party entities appointed by insurers or reinsurers to perform various functions on their behalf. AM Best’s Performance Assessments (PA) rate DUAEs on a scale from PA-1 (Exceptional) to PA-5 (Weak).

AM Best Plans to Assess MGAs, Other Delegated Authority Entities

AM Best uses the DUAE acronym to encompass entities that include not only MGAs but also managing general underwriters, coverholders, program administrators, program underwriters, underwriting agencies, direct authorizations and appointed representatives. The assessments are intended to provide an independent, objective opinion on an MGA’s ability to perform services for its insurance partners. The assessments are not credit ratings.

According to its assessment of First Indemnity:

AM Best considers First Indemnity’s governance and internal controls strong given the integration of core systems and interfaces with carrier partners supporting efficient and accurate processing fostering alignment of interest between carrier and MGA. The company implements clear operational policies and procedures, including formal business continuity and disaster recovery frameworks mitigating business disruption risk, AM Best said.

The MGA’s financial condition is supported by its “capital efficient model and backed by sustainable sources of income and disciplined expense management contributing to overall profitability,” according to AM Best. However, overall scale and limited expansion plans remain a moderating factor.

AM Best assesses First Indemnity’s organizational talent as “strong, marked by extensive industry experience across executive leadership.” First Indemnity’s organizational structure reflects a compact structure with clear and direct reporting and operational responsibilities leading to low employee turnover.

First Indemnity’s depth and breadth of relationships are also considered strong. AM Best said the company has demonstrated the ability to onboard and sustain relationships with providers. While its business is diversified geographically to all 50 states, concentration in a singular program is viewed as a limiting factor.

Topics Insurance Wholesale AM Best

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