Global credit ratings agency AM Best has placed Velocity Specialty Insurance Company’s (VSIC) Financial Strength Rating of A- and Long-Term Issuer Credit Rating of “a-” under review with positive implications.
This is following the recent announcement that FM, a commercial property insurer, will acquire VSIC. The deal is expected to close in the first half of 2025.
The under review with positive implications status reflects FM Group’s stronger ratings and larger capital base, along with its potential support for VSIC after the acquisition.
AM Best will assess the extent of support VSIC will receive under the new ownership, its strategic positioning within FM Group, and the potential financial and operational impact of the deal.
The ratings will remain under review until the transaction closes, which is subject to regulatory approval, and AM Best completes its assessment of the deal’s impact on VSIC’s rating fundamentals.
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