A.M. Best has revised the outlook of Delaware’s KnightBrook Insurance Company from negative to stable. The upgrade is thanks to the demonstrated and readily available substantial financial and operational support provided by KBIC’s parent, KnightBrook LLC, in the form of capital contributions.
According to A.M. Best: “KBIC’s positive rating attributes are derived from its adequate, albeit lower, capitalization and historical operating earnings. Offsetting these positive factors is the variability in the company’s underwriting results in recent years.”
Evidence of favourable operating results over the next 36 months and improved credit metrics could mean an upgrade for KnightBrook; unfavourable operating profitability relative to the market or a decline in capital due to operating or investment losses would be ground for a downgrade, according to A.M. Best.
Delaware, KnightBrook, A.M. Best