OLDWICK, NJ–(BUSINESS WIRE)–am the best has assigned Jet Insurance Company (Jet) (Charlotte, NC) a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of bbb+ (Good). The outlook associated with these credit ratings (ratings) is Stable.
The ratings reflect Jet’s balance sheet strength, which AM Best rates as strong, as well as the company’s reasonable operating performance, limited business profile and adequate risk management.
The ratings also reflect Jet’s strongest risk-adjusted capitalization as measured by Best’s capital adequacy ratio (BCAR), an experienced team of underwriting professionals, and a focused business plan to underwrite nearly all types of commercial transaction guarantee bonds, with a limited appetite for certain classes of the Business within the Contract, Discount and Trust segments.
AM Best rates the company’s operational performance as reasonable based on Jet’s historical results since inception and the clearly defined business plan. Jet was founded in 2018 as a property/casualty insurance company specializing in the issuance of sureties and sureties of trust. The company will seek to build a geographically diverse book of business, sourced through its affiliated wholesale insurance agency and Jet’s direct-to-principal distribution capability, which launched in March 2022. The company’s affiliated agency has leveraged its online endorsement platform and proprietary database to deliver consistent growth in carrier partner rewards over the past decade. There is some potential execution risk associated with the Company’s plan to migrate its existing surety business to Jet and the expansion of the direct-to-principal platform. While balance sheet and operating performance metrics are expected to be consistent with the Company’s provided projections, scaling operations could present challenges in achieving projected operating results and are likely to reduce the level of the Company’s risk-adjusted capitalization in the near term. As usual, AM Best will monitor Jet’s actual results relative to its plan.
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