A.M. Best Affirms Ratings of NYMAGIC, Inc. and Its Subsidiaries
June 22 2009 - 10:20AM
Business Wire
A.M. Best Co. has affirmed the financial strength rating
(FSR) of A (Excellent) and issuer credit ratings (ICR) of �a� of
New York Marine Group (NY Marine). The ratings also apply to
the two members of the group, New York Marine and General
Insurance Company (NY Marine) and Gotham Insurance
Company (Gotham) (both of New York, NY). A.M. Best also has
affirmed the FSR of A- (Excellent) and ICR of �a-� of Southwest
Marine and General Insurance Company (Southwest) (Phoenix, AZ)
which was formed in 2006 to write excess and surplus lines for the
group. Concurrently, A.M. Best has affirmed the ICR of �bbb� and
the debt rating of �bbb� of the $100 million, 6.5%, senior
unsecured bonds due 2014 issued by the publicly traded parent
company, NYMAGIC, Inc. (NY MAGIC) (New York, NY) [NYSE:
NYM]. The outlook for all ratings is stable.
The ratings reflect NY Marine�s solid capitalization, derived
from historically conservative underwriting leverage, strong
history of operating earnings, management�s efforts to decrease its
catastrophe exposure, proven ability to quickly adapt to changing
market conditions and a strong market niche in its core marine
business line.
Partially offsetting these positive rating factors is NY
Marine�s dependence on reinsurance, the decreased financial
flexibility at NY MAGIC following its $32.5 million capital
contribution to NY Marine in 2008 and the company�s limited capital
growth over the years. Additionally, this limited growth has been
hindered by dividend payments that have represented a significant
portion of earnings for NY Marine. Furthermore, the group has a
large portfolio of Alt-A mortgaged backed securities, which have
lost significant market value due to the turmoil within the housing
and credit markets. Nonetheless, NY Marine holds a super senior
position within these securities, which have maintained their high
credit ratings, significantly lowering the risk of default. As
such, the majority of the risk presented by these securities is
their illiquidity, although NY Marine plans on holding these
securities to maturity.
For Best�s Credit Ratings, an overview of the rating process and
rating methodologies, please visit www.ambest.com/ratings.
The principal methodologies used in determining these ratings,
including any additional methodologies and factors that may have
been considered, can be found at
www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is a global full-service
credit rating organization dedicated to serving the financial and
health care service industries, including insurance companies,
banks, hospitals and health care system providers. For more
information, visit www.ambest.com.
Nymagic (NYSE:NYM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Nymagic (NYSE:NYM)
Historical Stock Chart
From Jul 2023 to Jul 2024