A.M. Best Co. has assigned an issuer credit rating (ICR) of “bb” to North Pointe Holdings Corp. and has upgraded the financial strength rating (FSR) to B++ (Very Good) from B+ (Very Good) of its subsidiary, North Pointe Insurance Company (NPIC), both of Southfield, Mich. NPIC has also been assigned an ICR of “bbb”. All ratings have stable outlooks.
These rating actions take into consideration the completed initial public offering (IPO) of NPHC in September 2005 and its beneficial impact on overall financial flexibility, holding company leverage, liquidity and improved statutory risk-adjusted capitalization of both NPIC and NPCIC. Net proceeds from the IPO were approximately $42.4 million, about $10.0 million of which has been contributed to NPIC, with another $5.0 million infused into NPCIC.
The ratings also acknowledge NPHC’s third-quarter earnings announcement, in which the company reported pre-tax incurred losses of $5.4 million (net of reinsurance) as a result of Hurricanes Dennis, Katrina and Rita.
For more information, visit A.M. Best’s Web site at www.ambest.com.
Topics AM Best
Was this article valuable?
Here are more articles you may enjoy.
Space Startups Seek Insurance for Orbital AI Data Centers 
Mississippi Insurance Dept. Top Examiner Named in $90M Credit Union Theft Suit 
North Carolina Becomes First State to Pass Outright Ban on Litigation Financing 
Ship Insurers Set for Major Claims From Iran War, Allianz Says 
