AM Best Places Credit Ratings of GeoVera Insurance Group Members Under Review

AM Best placed under review with developing implications the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” (Excellent) of the members of GeoVera Insurance Group in Fairfield, California.

Coastal Select Insurance Company, GeoVera Insurance Co., GeoVera Reinsurance Ltd. and GeoVera Specialty Insurance Co. operate under an intercompany reinsurance agreement.

The ratings and review change follows the April 9 announcement that GeoVera Insurance Holdings Ltd. entered into a definitive agreement to sell its managing general agent (MGA) business to SageSure, a residential property catastrophe managing general agency, and to sell its insurance carriers to GeoVera Nova Holdings Inc. (GeoVera Nova), a newly formed holding company. As part of the latter transaction, GeoVera Nova also will acquire SafePort Insurance Co., a SageSure producer.

The ratings will remain under review pending the close of the transaction and until AM Best can fully review the post-transaction details.