AM Best has affirmed the Financial Strength Ratings of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of 'a-' of
Concurrently, AM Best has affirmed the Long-Term ICR of 'bbb-' of
The ratings of ASC and AIEL reflect the consolidated balance sheet strength of R&Q, which AM Best categorises as very strong, as well as R&Q's adequate operating performance, neutral business profile and appropriate enterprise risk management. The rating of R&Q, as a non-operating insurance holding company, is determined by reference to the credit assessment of R&Q on a consolidated basis and the normal subordination of holding company creditors to operating company policyholders.
In AM Best's view, ASC and AIEL are strategically important to and integrated within the Randall & Quilter group (collectively referred to as the group). They are pivotal to the group's growing program business, providing insurance services to managing general agents (MGAs), and hold essential licences for legacy business in
The R&Q group's consolidated balance sheet strength is underpinned by its risk-adjusted capitalisation being at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). While risk-adjusted capitalisation is likely to diminish in the medium term as a result of significant growth plans, AM Best expects R&Q to maintain its BCAR score at the strongest level. The group has continued to demonstrate strong financial flexibility in 2020 through the issuance of
Offsetting rating factors include execution risk relating to the profitable expansion of R&Q's program business, which involves the group providing fronting services to MGAs, along with increasing dependence on reinsurance as this business grows.
This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and AM Best Rating Action Press Releases.
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