Financial Strength and Credit Ratings
AM Best has assigned MGT Specialty Insurance Company (MGT Specialty) a Financial Strength Rating (FSR) of A- (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent). The credit rating agency has also affirmed the same ratings for MGT Insurance Company (MGT Insurance), both with a stable outlook.
Group Overview
Together, MGT Specialty and MGT Insurance form MGT Group (MGT). The ratings reflect MGT’s balance sheet strength, which AM Best assesses as very strong, along with its adequate operating performance, limited business profile, and appropriate enterprise risk management (ERM).
Formation of MGT Specialty
MGT Specialty, a newly established surplus lines (E&S) company, was formed in late 2024 as a wholly owned subsidiary of MGT Insurance. AM Best noted that MGT Insurance will fully reinsure MGT Specialty’s premiums and losses through a 100% quota share agreement. This structure enables MGT Specialty to offer flexible excess and surplus lines products, complementing the admitted products offered by MGT Insurance.
Target Market and Expansion Plans
The newly formed group provides property and liability coverage for small and medium-sized businesses, with a particular focus on veteran- and minority-owned enterprises. While still in its early stages, the group has begun writing a modest amount of premium and plans to expand across several states in the near term. AM Best expects MGT to maintain the strongest level of risk-adjusted capitalisation to support its growth and associated risks.
ERM Program
MGT’s ERM program currently mirrors that of MGT Insurance and is considered appropriate for the group’s scope and scale. Further refinements, particularly regarding reinsurance protections, are expected as MGT expands.
