AM Best Upgrades Ratings of Arkansas’ Kinsale Insurance

June 11, 2020

AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” from “a-” of Kinsale Insurance Co. (Kinsale), in Little Rock, Arkansas.

Kinsale is an excess and surplus lines insurance company specializing in hard-to-place property, casualty, and specialty risks. It is part of Richmond, Virginia-based Kinsale Capital Group Inc. (Kinsale Capital).

Concurrently, AM Best upgraded Kinsale Capital’s Long-Term ICR to “bbb” from “bbb-.”

The outlook of the ratings has been revised to stable from positive.

The ratings reflect Kinsale’s balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The ratings upgrade reflects AM Best’s assessment of the company’s operating performance at strong. Operating performance trends compare favorably to the industry and surplus line peers with remarkable consistency.

Efficiency in underwriting performance is credited to proven underwriting fundamentals, seasoned leadership, and an ERM program aligned to the risks that distinguish the surplus lines market.

Kinsale’s results are supported in part by an advantage in underwriting expenses. Risk-adjusted capital is maintained through management’s pro-active monitoring of the company’s risk profile.

The ratings may be considered for positive movement with expanded depth and breadth of risk-adjusted capital measurements. Negative rating action could occur if deterioration in operating performance brings results in line with industry or surplus lines composite trends.

Kinsale targets small-to-medium sized accounts. On its website the company says it is able to offer terms for businesses with poor loss histories, high risk venues, and new or high hazard operations. Products are distributed through select surplus lines brokers.

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