OLDWICK, NJ–(BUSINESS WIRE)–AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb+” (Good) to Jet Insurance Company (Jet) (Charlotte, NC). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Jet’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The ratings also reflect Jet’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), seasoned team of insurance professionals and targeted business plan to write nearly all transactional commercial surety bond types, with a limited appetite for certain classes or business within the contract, probate and fidelity segments.
AM Best assesses the company’s operating performance as adequate based on Jet’s historical results since inception and well-defined business plan. Jet was formed in 2018 as a property/casualty insurance company specialized in writing surety and fidelity bonds. The company will seek to build a geographically diverse book of business sourced through its affiliated wholesale insurance agency and Jet’s direct-to-principal distribution capability, which was launched in March 2022. The company’s affiliated agency has effectively utilized its online surety platform and proprietary database to achieve consistent growth in carrier partner premiums over the past ten years. There is some potential execution risk associated with the company’s plan to transfer its existing surety book of business to Jet, and in growing the direct-to-principal platform. While balance sheet and operating performance measures are expected to be in line with company provided projections, the scaling of operations could present challenges in achieving planned operating results and will likely reduce the company’s level of risk-adjusted capitalization over the near term. As is customary, AM Best will monitor Jet’s actual results relative to its plan.
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