Dellwood Specialty Gets A- Rating From AM Best

Dellwood Specialty Insurance Company has received a financial strength rating of A- (Excellent) from AM Best.

The industry rating agency said the rating as given due to Dellwood’s “very strong” balance sheet strength as well as other factors such as business plan, enterprise risk management, limited business profile, and operating performance.

The excess and surplus lines insurer dedicated to property/casualty wholesale brokers with an emphasis on small and middle enterprise (SME) risks.

Dellwood Insurance Group was launched in March by former AIG executives Michael Price and Kean Driscoll and backed by RenaissanceRe, PartnerRe, Starr Insurance, and Central Insurance, along with more than $250 million in capital, which exceeded initial targets, AM Best said.

Price serves as Dellwood CEO and Driscoll is president and chief underwriting officer. Another former AIG executive, Thomas Connolly also joined Dellwood. The trio and Dellwood were sued by AIG and several of its E&S subsidiaries in April. AIG alleged its executive violated employment contracts and misappropriated trade secrets but later dropped the claims against Price, Driscoll and Connolly.

Claims against Dellwood remain. In its lawsuit, AIG said it developed a unique and proprietary binding process that involved only wholesalers and that Dellwood, led by its former employees, “appears to have adopted that strategy” and is competing directly with AIG specialty insurers.

AM Best considered Dellwood’s leadership in the rating, saying, “Dellwood’s senior management team consists of individuals with extensive experience and strong track records in the industry.”