AM Best has assigned a preliminary credit assessment (PCA) to Accelerant Insurance Europe Limited (ACIL) with a financial strength assessment of A- and a long-term issuer credit assessment of “a-“ with a stable outlook, as the MGA-focused platform builds out its carrier footprint in Europe and the US.
The company is a wholly owned subsidiary of Accelerant Holdings and adds to an established Malta insurance company and a newly launched E&S carrier in the US called Accredited Specialty Insurance Company (ASIC).
As previously reported, the Jeff Radke-led group is also set to add an admitted carrier to its new US platform and has made a series of senior hires to manage the platform as it targets the US program sector.
In a statement, AM Best said the PCA on the Belgium-based ACIL reflects Accelerant’s “very strong” consolidated balance sheet strength, its adequate operating performance, limited business profile and appropriate enterprise risk management.
It added that the PCA considers the role and strategic importance of ACIL to the group as its principal writer of business in the European Union going forward.
AM Best said the company will benefit from common management with the rest of the group; explicit and implicit financial support, including capital commitments and reinsurance; and operational support.
Accelerant provides insurance capacity to MGAs as well as underwriting, claims handling and analytical support to its members. It also has the ability to invest in its MGA partners and typically retains a significant portion of risk to align interests with MGAs and reinsurers.
It is backed by a EUR200mn capital commitment from US private equity firm Altamont Capital Partners.
The PCA for the new EU subsidiary comes after AM Best affirmed the ratings of Malta carrier Accelerant Insurance Limited.
Also this week, Accelerant Holdings confirmed the launch of its US carrier in a move first revealed by this publication back in September.
It revealed a series of hires to the new platform, with Altamont’s Joe Zuk named president of ASIC, and former Allianz executive Hugh Burgess, former Guy Carpenter executive Rick Koehler, and former Arch executive John Willemsen all confirmed as part of the management team in the US.