AM Best puts Safepoint credit ratings on negative review

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OLDUICK, NJ – () –AM Best placed B- (satisfactory) financial strength rating (satisfactory) and long-term issuer credit rating ‘bb-‘ (satisfactory) on Safepoint (Safepoint) (Temple Terrace, FL) under review with negative consequences.

Pending status with negative implications for Safepoint reflects its short-term capital management plan for its holding company Safepoint Holdings, Inc. The negative pressure from the holding company, as it relates to the overall stability of the insurance company’s balance sheet, has intensified with capital erosion and outstanding debt that exceeds the AM Best threshold for what is considered to be leverage neutral.

Safepoint’s capital management plan calls for an improvement in the financial position of Safepoint Holdings, Inc., which is expected to ease the aforementioned pressures. If these plans are not implemented within the expected timeframe, a negative rating action could follow. The ratings will be reviewed until management completes and implements this plan and AM Best assesses the impact on the entire organization.

This press release refers to the credit ratings published on the AM Best website. For all rating information pertaining to the issue and related disclosures, including details of the department responsible for assigning each of the individual ratings mentioned in this issue, see AM Best’s Recent rating activity Internet page. For more information on the use and limitations of credit rating scores, please review Best Credit Ratings Guide… For information on the proper use of Best’s Credit Ratings media and AM Best press releases, please review Media Guidelines – Proper Use of Best Credit Ratings and AM Best Rating Action Press Releases

AM Best is an international rating agency, news publisher and 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 www.ambest.com

Copyright © 2021 AM Best Rating Services, Inc. and / or its subsidiaries. ALL RIGHTS RESERVED.

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