AM Best awards credit ratings to Emerald Bay Specialty Insurance Company
AM Best awards credit ratings to Emerald Bay Specialty Insurance Company

ALDUICK, NJ March 28, 2024—(BUSINESS WIRE)–AM Best assigned a financial strength rating of A- (Excellent) and a long-term issuer credit rating of “a-” (Excellent) to Emerald Bay Specialty Insurance Company (EBSIC) (Tucson, AZ). The outlook given to these credit ratings (ratings) is stable.

The ratings reflect the strength of EBSIC’s balance sheet, which AM Best rates as very strong, as well as its adequate operating results, limited business profile and appropriate enterprise risk management (ERM).

EBSIC is an Arizona-based hybrid front-end company operating in the redundant line market in the United States. As such, the company’s strategy includes maintaining a significant risk position in the programs it writes. EBSIC’s ultimate parent is Emerald Bay Risk Solutions, LLC (Emerald Bay), and Emerald Bay will be primarily owned by Bain Capital Insurance (BCI).

EBSIC’s balance sheet strength rating is driven by the company’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), which is expected to be in the strongest range over the company’s initial five-year business plan. Balance sheet strength is further supported by a conservative investment profile and the backing of BCI. BCI has invested significant capital in the company to support start-up operations and assisted EBSIC’s ultimate parent, Emerald Bay, in securing a term loan as part of EBSIC’s seed funding.

AM Best rates EBSIC’s operating results as adequate as the underwriting company’s guidance is expected to lead to profitable operating results in the medium term. Additionally, the company’s initial portfolio will include third-party programs where management has developed deep expertise through previous collaborations. AM Best rates EBSIC’s business profile as limited given the start-up nature of the company’s operations. However, AM Best notes that management has significant experience in operating the insurance and fronting markets, which reduces execution risk. AM Best assesses EBSIC’s ERM framework as appropriate with clear strategic objectives well aligned with the company’s risk appetite. In addition, a robust monitoring and risk management structure is in place to ensure accountability and oversight across the organization.

This press release refers to the credit ratings that are published on the AM Best website. For all rating information relating to the release and related disclosures, including details of the agency responsible for issuing each of the individual ratings mentioned in this release, please see AM Best’s web page for recent rating activities. For further information on the use and limitations of credit score opinions, please see Best’s Guide to Credit Scores. For information on the proper use of Best Credit Ratings, Best Performance Ratings, Best Preliminary Credit Ratings, and AM Best Press Releases, please see the Guide to the Proper Use of Best Ratings and Ratings.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2024 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Christian Sierra
A financial analyst
+1 908 882 2315
[email protected]

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
[email protected]

Greg Williams
Chief Director
+1 908 882 2434
[email protected]

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
[email protected]

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