AM Best upgrades VSIC’s credit ratings following acquisition by FM

AM Best has removed the under review with developing implications status it placed on Velocity Specialty Insurance Company (VSIC) earlier this year, upgrading its Financial Strength Rating to A from A- and its Long-Term Issuer Credit Rating (Long-Term ICR) to “a” from “a-”, with a stable outlook.

The upgrades reflect VSIC’s balance sheet strength, which AM Best assesses as very strong, along with adequate operating performance, a limited business profile, and appropriate enterprise risk management.

The action follows the completion of VSIC’s acquisition by FM Group (FM) from Velocity HoldCo, LLC (Velocity) in early May 2025.

According to AM Best, the rating enhancement to VSIC’s Long-Term ICR reflects the implicit and explicit support it now receives from FM, as well as FM’s stronger ratings and larger capital base.

FM plans to leverage VSIC to add excess and surplus lines capabilities to augment its core business and strengthen its position in the middle market property segment. Additionally, technology and analytical innovations developed at VSIC are expected to be integrated into FM’s operations where applicable.

VSIC also benefits from FM’s participation as a quota share reinsurer on its most recent program.

This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.