New Florida Commercial Insurer CastlePoint Assigned Ratings

A.M. Best Co. has assigned a financial strength rating of A- (Excellent) and issuer credit rating of “a-” to CastlePoint Florida Insurance Co. (CFIC) of Fort Lauderdale. The rating firm said the outlook assigned to these ratings is stable.

CFIC is a newly formed insurance company that received a certificate of authority from the Florida Insurance Department on Feb. 19, 2009. A.M. Best said the ratings reflect the explicit support provided by its parent, CastlePoint Insurance Co. (CPIC) of New York in the form of a 90 percent quota share reinsurance agreement. CPIC is ultimately owned by Tower Group, Inc., headquartered in New York.

CFIC is expected to write small- to medium-sized workers’ compensation and commercial automobile insurance coverages in Florida. This business had previously been written by a third party fronting carrier and assumed by CPIC.

Tower, through its subsidiaries offers specialized property/casualty insurance products and services to small- and mid-sized businesses and individuals primarily in the Northeast, Florida, Texas and California.

Source: www.ambest.com/ratings