Best Affirms Hiscox USA Group’s ‘A’ Ratings; Outlook Stable

May 28, 2010

A.M. Best Co. has affirmed the financial strength rating (FSR) of ‘A’ (Excellent) and issuer credit ratings (ICR) of “a” of Hiscox USA Group, and its lead member, Hiscox Insurance Company Inc. (HICI), based in Geneva, Illinois. Hiscox USA is comprised of HICI and HICI’s inactive subsidiary, Hiscox Specialty Insurance Company, Inc. The outlook for all of the ratings is stable.

Best also noted that in concurrence with this affirmation, it “has afforded Hiscox USA and HICI full rating enhancement, and both have been extended the ratings of HICI’s Bermuda-based affiliate, Hiscox Insurance Company (Bermuda) Limited.”

Hiscox USA and HICI’s ratings are based on Best’s group rating methodology and “take into consideration HICI’s role and strategic importance to the Hiscox group, as well as the implicit and explicit support provided by the Hiscox group in the form of quota share reinsurance with Hiscox Bermuda and a guarantee on all third-party reinsurance recoverables with the Bermudian ultimate parent holding company, Hiscox Ltd.,” Best explained. “The ratings also reflect the implied commitment to be provided by the Hiscox group in the future in order to support HICI’s expansion in the United States.”

The FSR of ‘A’ (Excellent) and ICR of “a” of Hiscox Bermuda are unchanged.

Source: A.M. Best

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