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Associated Press

AM Best Assigns Credit Ratings to MGT Specialty Insurance Company; Affirms Credit Ratings of MGT Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--Mar 7, 2025-- AM Best has assigned a Financial Strength Rating (FSR) of A- (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of 'a-' (Excellent) to MGT Specialty Insurance Company (MGT Specialty) (Phoenix, AZ). The outlook assigned to these Credit Ratings (ratings) is stable. Additionally, AM Best has affirmed the FSR of A- (Excellent) and a Long-Term ICR of 'a-' (Excellent) of MGT Insurance Company (MGT Insurance) (Greenwood Village, CO). The outlook of these ratings is stable. These companies comprise a newly formed group, MGT Group (MGT). The ratings reflect MGT's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). MGT Specialty was formed late in 2024 as a wholly owned subsidiary of MGT Insurance. The assignment of the ratings reflects the new relationship between the two companies whereby MGT Insurance will fully reinsure all premiums and losses of MGT Specialty through a 100% quota share agreement. MGT Specialty provides excess & surplus lines product and rate flexibility to compliment the admitted product offered by MGT Insurance. The newly formed group offers property and liability coverage within the small- and medium-size commercial segment, with particular focus on veteran and minority-owned businesses. The group is in its infancy and has only started to write a modest amount of premium with the intent to expand across several states in the near term. As such, AM Best expects the group to maintain the strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), in order to support prospective growth and the assumption of related risks. The current ERM program for the collective group is the same as for MGT Insurance and is considered appropriate for the scope and scale of MGT's operations. Further refinement, particularly as it relates to reinsurance protections, will develop as MGT expands. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. Director +1 908 882 1749 Richard Attanasio Senior Director +1 908 882 1638 [email protected] Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 [email protected] Al Slavin Senior Public Relations Specialist +1 908 882 2318 KEYWORD: EUROPE UNITED STATES NORTH AMERICA NEW JERSEY INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE FINANCE SOURCE: AM Best Copyright Business Wire 2025. PUB: 03/07/2025 02:44 PM/DISC: 03/07/2025 02:47 PM