OLDWICK, NJ–(BUSINESS WIRE)–AM Best assigned a performance rating of PA-3 (Strong) to First Indemnity Insurance Agency, Inc. (First Indemnity) (Lynn, MA). The outlook assigned to the performance evaluation (evaluation) is stable.
This rating reflects First Indemnity’s strong underwriting capabilities, strong governance and internal controls, strong financial position, strong organizational talents, and depth and breadth of relationships.
First Indemnity is a Managing General Agent (MGA) specializing in professional liability insurance in the US market. For over 30 years, First Indemnity has proven expertise in designing professional liability products for legal professionals. This experience and track record of staff development further benefits First Indemnity’s underwriting capabilities and is an advantage for partnering with capacity providers.
First Indemnity’s governance and internal controls are strong given its size and scope. First Indemnity conducts regular internal reviews, covering underwriting and compliance. Additionally, the company is subject to multiple external audits to capture service metrics from the perspective of its stakeholders and regulators. System integration with (re)insurance partners is sufficient.
The company’s financial performance indicators are considered solid. First Indemnity has posted stable and profitable overall earnings over several periods. Operations are oriented as a capital efficient small independent business. Current operations are within the financial capacity of the organization and are expected to remain so. All insurance risks are placed outside the organization with no exposure retained by First Indemnity.
The firm is staffed appropriately for its size and scope with extensive industry experience serving the professional liability needs of the legal community. The organization has a concise structure with clear and direct reporting and operational responsibilities.
First Indemnity’s program mix is focused on legal industry coverage with the ability to provide coverage in all 50 states. The company has relationships with a number of highly rated capacity providers. The company’s seniority in its respective market is considered a strength.
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