A.M. Best has revised the outlook to stable from negative and affirmed the financial strength rating of “A- (Excellent)” and issuer credit rating of “a-” of KnighBrook Insurance Company.
The rating action reflects the demonstrated and readily available financial and operational support provided by KnightBrook Insurance’s parent, KnightBrook, in the form of capital contributions.
In a recent release A.M. Best, said: “KnightBrook Insurance’s positive rating attributes are derived from its adequate, albeit lower, capitalisation and historical operating earnings. Offsetting these positive factors is the variability in the company’s underwriting results in recent years.”
Factors that could lead to positive rating actions for KnightBrook Insurance would be evidence of favourable operating performance over the next 36 months and credit metrics that improve, steadily supporting its ratings.
“Factors that could result in the downgrading of KnightBrook Insurance’s ratings include an unfavorable operating profitability relative to the market, an altered view of KnightBrook Insurance’s management’s capability or a material decline in its risk-adjusted capital as a result of operating or investment losses.”
