Openly’s customizable property products are mostly meant for high-value residences: homes with a replacement cost between $250k and $3M. From the carrier’s Boylston Street location in Boston, they sell modern, high-end homeowners and landlord insurance products. In 2017, Ty Harris and Matt Wielbut founded Openly. NMLS # 1681276, is referred to here as "Credible." Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. ALL RIGHTS RESERVED.Our goal is to give you the tools and confidence you need to improve your finances. 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. ĪM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. This press release relates to Credit Ratings that have been published on AM Best’s website. Tower Hill Prime faces several challenges ranging from severe hurricanes, more frequent lower level weather-related events and social inflation. Furthermore, the negative outlooks reflect pressure on the company’s operating performance with the severity of recent results not aligning with AM Best’s assessment of marginal. The company’s Florida personal lines policies will be moved to Tower Hill Insurance Exchange, a separate entity from Tower Hill Prime created specifically to house this volatile segment. Tower Hill Prime has planned to non-renew about 50% of its Florida personal lines business by the end of 2022 and completely exit the segment by 2023. The negative outlooks reflect AM Best’s concern related to the effectiveness of current risk mitigation strategies as they relate to Tower Hill Prime’s ERM assessment and the execution risk of exiting the volatile Florida personal lines segment. Combined with the aforementioned issues is continually climbing financial leverage of the holding company, Tower Hill Holdings, Inc., which AM Best’s continues to view as negative, adding pressure to the overall balance sheet strength assessment. Reserves, which continue to develop adversely despite strengthening measures, are influenced partly by widespread social inflation driven by increased litigation in the company’s operating territory. Additionally, Tower Hill Prime continues to face challenges in adequately setting reserves. While Tower Hill Prime has benefitted from capital contributions through the holding company and the issuance of surplus notes, the quality of operating company capital has deteriorated as surplus notes currently make up more than half of Tower Hill Prime’s second quarter 2022 surplus. The downgrade of Tower Hill Prime’s Long-Term ICR reflects a significant decline in its overall risk-adjusted capitalization, as measured by the Best Capital Adequacy Ratio (BCAR), to the very strong level from the strongest level, coupled with continued surplus erosion and elevated financial leverage of the holding company. The ratings reflect Tower Hill Prime’s balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management (ERM). Concurrently, AM Best has withdrawn these ratings as the company has requested to no longer participate in AM Best’s interactive rating process. The outlook of these Credit Ratings (ratings) is negative. OLDWICK, N.J.-( BUSINESS WIRE)- AM Best has downgraded the Financial Strength Rating to B (Fair) from B+ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “bb” (Fair) from “bbb-” (Good) of Tower Hill Prime Insurance Company (Tower Hill Prime) (Gainesville, FL).
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