AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Coalition Insurance Company (CIC) (New York, NY). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect CIC’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

CIC’s balance sheet strength is supported by the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), surplus growth, conservative loss reserves and low underwriting leverage produced in the first nine months of operation and its five-year pro forma.

CIC’s adequate operating performance is largely based on CIC scaling its book of business through its affiliate, Coalition Insurance Solutions, Inc. (CIS) and the ability to execute on the company’s strategic business plan, including, pro forma operating results over the next five years. Cyber insurance is one of the fastest growing lines of business, and between business and management projects the business to expand rapidly with sustained premium growth for the company over the next five-year period.

CIC’s business profile assessment of limited reflects its position as a new company writing cyber insurance. The company is licensed and operating in all 50 states and the District of Columbia and is currently providing coverage for cyber liability and technology errors & omissions. CIS has relationships with a broad base of insurance brokers, which has access to the company's proprietary system to quote, rate and bind policies. CIC's management team includes diverse backgrounds with extensive experience in insurance, engineering & product, cybersecurity and software development. CIC partners with its brokers and insureds to educate and remediate vulnerabilities identified in their systems.

CIC's ERM is considered appropriate for its risk profile, overall underwriting, risk management, remediation response and circular and continuous underwriting. CIC understands the risk, reviews vulnerabilities and manages risks within its risk appetite and risk tolerances. CIC is dependent on its parent for most of its risk management resources and decision-making as it works to develop its own framework over time.

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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