NEW YORK–(BUSINESS WIRE)–#creditratingagency–KBRA assigns a BBB Insurance Financial Strength Rating (IFSR) to Manatee Insurance Exchange. The Outlook for the rating is Stable.
Manatee Insurance Exchange (“Manatee” or “the Company”) is a new reciprocal property and casualty insurance company headquartered in Temple Terrace, FL which will write primarily homeowners multi-peril business solely in Florida. Manatee was formed by the management team of Safepoint Insurance Company (Safepoint) (BBB+/Stable) with the expectation that Safepoint’s Florida business will renew with Manatee. Additionally, Manatee will offer voluntary personal and commercial lines policies with similar underwriting strategies as Safepoint.
The rating reflects Manatee’s low underwriting leverage and significant surplus relative to projected premiums written, as well as a favorable market opportunity due to the company entering a sector with declining private market capacity. Manatee will have manageable start-up expenses due to an organizational structure whereby the Attorney-in-Fact will incur the majority of start-up costs. Additionally, as a start-up insurer, Manatee has no legacy liabilities. KBRA views the company’s business plan as reasonable, with a management team that has considerable experience in the Florida homeowners’ insurance market. Balancing these strengths is the company’s high financial leverage due to its entire surplus base consisting of $25 million in surplus notes. Furthermore, as a Florida-only writer, primarily focused on homeowners business, the company will have product and geographic concentration, natural catastrophe exposure due to hurricanes, and high reinsurance dependence that, depending on availability and affordability, could materially impact results. Lastly, as a new insurer, Manatee’s future profitability is uncertain and dependent upon management executing its business plan.
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- Insurance: Insurer & Insurance Holding Company Global Rating Methodology
- ESG Global Rating Methodology
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Doc ID: 1003023
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