AM Best upgrades Skyward Specialty members rating to A with stable outlook

AM Best has upgraded the Financial Strength Rating of Skyward Specialty Insurance Group’s subsidiary insurance companies from “A-” to “A” (Excellent) rating with a stable outlook.

Skyward Specialty’s members Long-Term Issuer Credit Ratings (Long-Term ICRs) has also been upgraded from A- to A.

Skyward Specialty’s members include Houston Speciality Insurance Company, Imperium Insurance Company, Great Midwest Insurance Company, and Oklahoma Speciality Insurance Company.

According to AM Best, the ratings upgrade reflects Skyward Specialty’s “balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.”

For example, the group’s operating performance reflects an ongoing pattern of improving underwriting results since 2020, following a change in executive leadership, as well as stable investment income.

Skyward Specialty’s management has also introduced various capital initiatives in recent years, including a loss portfolio transfer aimed at mitigating the impact of discontinued lines. The group has also benefited from numerous parental capital contributions to support its operations.

Moreover, AM Best stated that the upgraded Long-Term ICR is attributable to Skyward Specialty’s successful IPO. This holding company’s financial leverage and interest coverage ratios continue to meet AM Best’s expectations, with additional capacity to access the capital markets if needed.

Andrew Robinson, chairman and CEO of Skyward Specialty, commented, “We are thrilled that the successful execution of our “Rule Our Niche” strategy over the past four years is being recognized by AM Best.

“This upgrade to an ‘A’ rating not only signifies the strength of our balance sheet and our excellent operating performance, it also recognizes our innovative use of technology and the exceptional execution by our highly-skilled team members. As an ‘A’ rated company, we are now even better positioned to profitably grow our business, meet the needs of the customers and brokers we serve today, and also capitalise on market opportunities in new areas.”

Robinson added, “This recognition by AM Best would not be possible without the dedication and commitment to excellence by our 540 colleagues. Their commitment to our vision and strategy endures as we continue to lead and win in our selected markets.”

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