AM Best has assigned a financial strength rating of A- (Excellent) and a long-term issuer credit rating of “a-” (Excellent) to Delaware-based Velocity Specialty Insurance Company (VSIC). Velocity HoldingCo is the holding company for VSIC. The outlook assigned to these ratings is stable. AM Best says the ratings of VSIC reflect its balance sheet strength, which it assesses as “very strong”, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). The “very strong” balance sheet assessment reflects the company’s strongest level of risk-adjusted capitalisation, as measured by AM Best’s capital adequacy ratio. AM Best expects the company’s risk-adjusted capitalisation to remain at the “strongest level” with additional positive assessment factors contributing, including quality of assets and a conservative investment portfolio. VSIC’s operating performance is adequate based on its projections and anticipated writings and infrastructure, according to AM Best. The aspects will be utilised with seasoned business relationships of affiliated entities . AM Best views the company’s business profile as limited given that VSIC is a startup entity and will have geographic concentration in Florida, Texas and Louisiana. VSIC’s ERM capabilities benefit from its overall framework at the parent level.
