A.M. Best Assigns Ratings to Global Liberty Insurance Company of New York
A.M. Best Co. has assigned a financial strength rating of B+ (Good) and an issuer credit rating of “bbb-” to Global Liberty Insurance Company of New York (Global) (Melville, NY). The outlook assigned to both ratings is stable.
The ratings reflect Global’s adequate risk-adjusted capitalization, favorable operating performance since commencing operations in 2003 and its expertise within the for-hire-livery vehicle market in the New York City metropolitan area. Largely offsetting these positive rating factors are Global’s operational and financial risks as a young company operating in highly competitive markets. The outlook for Global’s ratings is reflective of A.M. Best’s expectation that the company will maintain a risk-adjusted capital level, which will support its current ratings.
Global remains focused on achieving steady profitable growth by following well-maintained underwriting guidelines. Currently, the company primarily writes commercial auto liability and extended no-fault coverages for the for-hire-livery vehicle market in the New York City metropolitan area, principally insuring black and luxury cars and limousines, while not insuring the higher risk taxi business and also limiting car service business. Minimal physical damage coverage also is written for select classes of its auto business.
In 2007, after having been successfully launched in the competitive New York City livery vehicle market, Global began providing commercial property and liability coverages in New York state for small businesses (largely commercial package policies and business owners policies), and in 2008, homeowners coverages. While growth of these lines has been limited to date, more substantial growth is planned in the future. In 2009, Global began to diversify its products geographically, having become licensed in New Jersey, and has recently become licensed in Arizona, California and Florida, where the company intends to further grow its specialized for-hire-livery business.
As a young company, Global is challenged with above-average risks including execution of its business plans, limited product and geographic diversification, above-average dependence on reinsurers and the potential for adverse deviation relating to reserves. As with any relatively new company, A.M. Best will closely monitor Global’s progress to ensure that its targeted results are attained and its capitalization is in compliance with A.M. Best’s standards relative to its ratings. In addition, as Global’s commercial and personal property coverages grow, A.M. Best will monitor that its catastrophe exposures are appropriately managed.
The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; Catastrophe Analysis in A.M. Best’s Ratings”; Natural Catastrophe Stress Test Methodology”; and “Rating Members of Insurance Groups.” Methodologies can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2011 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
A.M. Best Co.
W. Dolson Smith, CFA
Senior Financial Analyst
908-439-2200, ext. 5379
Michael J. Lagomarsino, CFA
Assistant Vice President
908-439-2200, ext. 5810
Public Relations Associate
908-439-2200, ext. 5445
Assistant Vice President, Public Relations
908-439-2200, ext. 5644