AM Best has assigned a financial strength rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” to Southlake Specialty Insurance Co. (SSIC) and its subsidiary, Westlake Specialty Insurance Co., both based in Westlake, Texas.
These property/casualty specialty insurance companies collectively are referred to as Southlake. They specialize in commercial auto insurance.
The outlook assigned to the ratings is stable.
The ratings reflect Southlake’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile, appropriate enterprise risk management and the execution risk faced by any startup organization.
The ratings also consider Southlake’s excellent projected risk-adjusted capitalization and sound business strategy, which capitalizes on Southlake’s expertise in the commercial auto insurance market segment. Southlake will operate as a fronting insurer; SSIC will operate on an excess and surplus basis, with Westlake providing admitted paper when needed and for specific geographic and product lines.
Business will be generated initially through its affiliation with NTA Underwriters as Southlake expands its relationships with unaffiliated MGAs.
Southlake’s senior management team has extensive experience and a solid track record in the commercial auto marketplace. AM Best believes this experience, as well as management’s relationships with distribution sources, will be key to Southlake quickly gaining traction in its targeted market.
Southlake expects to begin operations in the second quarter of 2021.
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