HOUSTON - 02/07/2011
Houston International Insurance Group (HIIG) announced today that A.M. Best Company had affirmed the financial strength ratings of its property & casualty insurance company subsidiaries. This review was conducted following the recent merger between Southwest Insurance Partners, Inc. and Lightyear Delos Acquisition Corp., which resulted in the formation of HIIG.
Imperium Insurance Company (IIC) and Houston Specialty Insurance Company (HSIC) are rated A- (Excellent) Financial Size Category VIII and Great Midwest Insurance Company (GMIC) is rated A (Excellent) Financial Size Category VII. The outlook assigned to all ratings is stable.
In their announcement, AMB stated that:
“The ratings of HIIG Group reflect its solid risk-adjusted capitalization, excellent liquidity and the prospective benefits gained from the liquidity and financial flexibility afforded by HIIG. The ratings also take into consideration management’s upcoming business plan and the potential opportunities gained from Mr. Way’s successful track record, extensive experience and relationships within the property/casualty market.
Additionally, the ratings recognize the financial flexibility offered by HIIG, reflecting the ultimate parent’s solid balance sheet strength and moderate financial leverage, measured at total debt-to-capital of 26.7%. HIIG’s coverage ratios also are in line with A.M. Best’s standards. The annual expense to service the outstanding debt of HIIG is expected to be covered by the available cash at the holding company level over the near term.”
Stephen L. Way, Chairman and Chief Executive Officer of HIIG, said, “We are pleased with the A.M. Best Review of our Group, which recognizes the hard work and improvements that we have already achieved in the short time following our merger.” He added, “We now have a strong financial base with the resources to take advantage of opportunities that are already in front of us.”
IIC is an admitted insurer in 50 states and writes specialty program business through carefully selected underwriting agencies across the USA. IIC provides capacity, systems and financing opportunities for its program managers.
HSIC is a surplus lines carrier approved in 48 stated and writes specialty business in the USA and internationally.
GMIC is an admitted insurer in 43 states and writes small and medium size specialty business exclusively through Bunker Hill Underwriters, an underwriting agency also part of the HIIG Group.
HIIG is an insurance holding company based in Houston with office in NYC, Atlanta and Chicago. HIIG total assets exceed $1 billion; investment assets are more than $625 million; and shareholders equity is almost $250 million.