AM Best Assigns Credit Ratings to Next Insurance US Company.

ENPNewswire-September 6, 2021--AM Best Assigns Credit Ratings to Next Insurance US Company

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Release date- 03092021 - AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of 'a-' (Excellent) to Next Insurance US Company (Next US) (headquartered in Palo Alto, CA).

The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect Next US' balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

The ratings also reflect Next US' strongest level of projected risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), and a sound business plan that is expected to take advantage of the sizable small- and medium-size business (SMB) market. The company will seek to build a geographically diversified book of business that will be sourced through direct channels, independent agents and partnerships through an affiliated agency. The company uses an online platform, developed by Next Insurance, Inc. (the parent), that leverages AI and machine learning which optimizes processes and reduces customer transaction time. AM Best believes that the company's existing relationships and distribution channels will be fundamental in gaining the projected scale in the market.

The ratings also consider the execution risk inherent in start-up organizations and the potential challenges management faces to execute on the business plan. While the company's innovative platform and existing relationships are anticipated to meet projections effectively, the scaling of operations may present challenges in gaining traction and achieving the planned profitable results. As is customary...

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