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Press release content from Business Wire. The AP news staff was not involved in its creation.

AM Best Places the Credit Ratings of Safepoint Insurance Company Under Review with Negative Implications

June 2, 2021 GMT

OLDWICK, N.J.--(BUSINESS WIRE)--Jun 2, 2021--

AM Best has placed under review with negative implications the Financial Strength Rating of B- (Fair) and the Long-Term Issuer Credit Rating of “bb-” (Fair) of Safepoint Insurance Company (Safepoint) (Temple Terrace, FL).

The under review with negative implications status for Safepoint reflects its near-term capital management plan for its holding company, Safepoint Holdings, Inc. The unfavorable pressure from the holding company, as it relates to the insurance company’s overall balance sheet strength, has increased due to equity erosion and outstanding debt, which exceeds AM Best’s threshold for what is considered a neutral level of financial leverage.

Safepoint’s capital management plan calls for an improved financial position for Safepoint Holdings, Inc., which is expected to alleviate the aforementioned pressure. Should these plans not materialize within the expected timeline, negative rating action may follow. The ratings will remain under review until management finalizes and executes this plan and AM Best evaluates the impact on the overall organization.

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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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AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20210602006066/en/

CONTACT: Christopher Draghi

Associate Director

+1 908 439 2200, ext. 5043

chris.draghi@ambest.com

Michelle Baurkot

Director

+1 908 439 2200, ext. 5314

michelle.baurkot@ambest.com

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Jim Peavy

Director, Communications

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: NEW JERSEY EUROPE UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: INSURANCE PROFESSIONAL SERVICES

SOURCE: AM Best

Copyright Business Wire 2021.

PUB: 06/02/2021 05:20 PM/DISC: 06/02/2021 05:22 PM

http://www.businesswire.com/news/home/20210602006066/en