Credit Ratings of Houston International Insurance Group Subsidiaries Under Review

November 8, 2018

A.M. 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-” of Houston Specialty Insurance Co. (HSIC) and its 100 percent reinsured subsidiary, Oklahoma Specialty Insurance Co. (OSIC), based in Oklahoma City.

Concurrently, A.M. Best has placed under review with developing implications the FSR of A- (Excellent) and the Long-Term ICRs of “a-” of HSIC’s subsidiary, Imperium Insurance Co. (IIC).

A.M. Best also has placed under review with developing implications the FSR of A (Excellent) and the Long-Term ICR of “a” of IIC’s wholly owned subsidiary, Great Midwest Insurance Co. (GMIC).

In addition, A.M. Best continues to maintain under review with developing implications status on the FSR of B+ (Good) and the Long-Term ICR of “bbb-” of Boston Indemnity Co. Inc. (BIC) in Andover, Massachusetts, following its acquisition by Houston International Insurance Group Ltd. (HIIG Ltd.).

All companies ultimately are owned by HIIG Ltd., which is headquartered in Houston.

These Credit Ratings (ratings) have been placed under review with developing implications due to the announcement in April 2018 that HIIG Ltd. and its controlling shareholder intend to review alternative capital opportunities for future expansion and the potential for organizational changes arising from any transaction or initiative.

Given management’s efforts since that announcement, A.M. Best expects these ratings to remain under review until any resulting transaction or initiative is concluded, and A.M. Best completes its assessment of those actions.

A.M. Best will continue to monitor any interim developments, including the integration efforts pertaining to BIC and take any necessary rating action as appropriate.

The last effective date for these ratings, excluding BIC, was Oct. 10, 2017.

Source: A.M. Best

Was this article valuable?

Here are more articles you may enjoy.