AM Best has removed from under review with developing implications and upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” (Excellent) from “a-” (Excellent) of Velocity Specialty Insurance Co. (VSIC) of Wilmington, Delaware. The outlook assigned to these credit ratings is stable.
AM Best said the ratings reflect the excess and surplus lines insurer’s balance sheet strength, which its analysts assess as “very strong,” as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
AM Best added that the removal from under review with developing implications and rating upgrades reflect the completion of VSIC’s acquisition by FM Group in early May 2025 as FM seeks to expand into the E&S property insurance.
AM Best noted that due to the implicit and explicit support received as a recently acquired entity, as well as the higher ratings and larger capital base of its new parent FM, a notch of rating enhancement was extended to VSIC’s Long-Term ICR.
FM intends to utilize VSIC to add excess and surplus lines capabilities to augment its core business and broaden its reach in the middle market property segment. In addition, AM Best expects that VSIC’s technology and analytical innovations will be integrated into FM’s businesses. VSIC also benefits from FM participating as a quota share reinsurer on its most recent program, AM Best noted.
VSIC was formerly part of the Velocity Risk group, which also included Velocity Risk Underwriters. Velocity Risk Underwriters was recently acquired by Ryan Specialty.
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