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Velocity Specialty Insurance Receives Upgrade from AM Best Following FM Group Acquisition
ByAinvest
Monday, Jun 2, 2025 9:49 am ET1min read
AM Best has upgraded Velocity Specialty Insurance's Financial Strength Rating to A (Excellent) and Long-Term Issuer Credit Rating to "a" (Excellent) following its acquisition by FM Group. The upgrade reflects FM's implicit and explicit support, as well as its higher ratings and larger capital base. FM plans to use VSIC to expand into excess and surplus lines property insurance and integrate VSIC's technology and analytical innovations into its businesses. The outlook for the ratings is stable.
AM Best has recently upgraded Velocity Specialty Insurance Company's (VSIC) Financial Strength Rating to A (Excellent) and its Long-Term Issuer Credit Rating to "a" (Excellent), following its acquisition by FM Group. The ratings reflect the strong balance sheet and adequate operating performance of VSIC, as well as the implicit and explicit support it now receives from its new parent company [1].The acquisition by FM Group, completed in early May 2025, has led to a stable outlook for VSIC's ratings. The upgrade to its Long-Term Issuer Credit Rating (Long-Term ICR) is a result of the higher ratings and larger capital base of its new parent company, FM Group [2]. This support, along with FM Group's plans to integrate VSIC's technology and analytical innovations into its operations, has bolstered VSIC's financial profile.
FM Group intends to leverage VSIC's excess and surplus lines capabilities to augment its core business and strengthen its position in the middle market property segment. Additionally, VSIC benefits from FM Group's participation as a quota share reinsurer on its most recent program. These strategic moves are expected to further enhance VSIC's financial stability and operational efficiency.
The upgrade in ratings indicates that AM Best views VSIC's current financial situation and future prospects positively. The stable outlook suggests that AM Best anticipates no significant changes in VSIC's financial performance in the near term.
References:
[1] https://www.morningstar.com/news/business-wire/20250529494494/am-best-removes-from-under-review-with-developing-implications-and-upgrades-credit-ratings-of-velocity-specialty-insurance-company
[2] https://www.reinsurancene.ws/am-best-upgrades-vsics-credit-ratings-following-acquisition-by-fm/
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