KBRA assigns BBB+ insurance financial strength ratings (IFSR) to First Protective Insurance Company and Frontline Insurance Unlimited Company. The Outlook for both ratings is Stable.

First Protective Insurance Company is a property/casualty insurer focused on writing personal homeowners coverage primarily in Florida as well as four other coastal states in the Southeast. Frontline Insurance Unlimited Company is a property-casualty insurer focused on writing predominantly commercial multi-peril as well as allied lines primarily in Florida as well as four other coastal states in the Southeast. The ratings for both entities reflect an experienced management team with a focused strategy, financial flexibility through a holding company/managing general agent (MGA) structure, a solid reinsurance program, and strong local market presence with a well-established distribution network supportive of targeted growth.

While both companies have reported net losses in three of the last five years primarily due to elevated natural catastrophe events, KBRA views near-term financial results positively, driven by strong underwriting and claims handling, which compare favorably to Florida peers.

Balancing these credit strengths are the companies’ moderate geographic concentration within Florida and other Southeastern coastal areas that exposes both entities to natural catastrophes and makes them dependent on reinsurance. While favorable in relation to stated targets, risk-based capitalization and premium leverage at each company generally compare unfavorably to Florida peers.

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Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

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