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AM Best Removes From Under Review With Positive Implications and Upgrades Credit Ratings of Folgate Insurance Company Limited; Affirms Credit Ratings of Hadron Specialty Insurance Company

AM Best has removed from under review with positive implications and upgraded the Financial Strength Rating (FSR) to A- (Excellent) from B (Fair) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a-” (Excellent) from “bb+” (Fair) of Folgate Insurance Company Limited (United Kingdom). The outlook assigned to these Credit Ratings (ratings) is stable. Concurrently, AM Best has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Hadron Specialty Insurance Company (Little Rock, AR). The outlook of these ratings is stable. Together these companies comprise the Hadron group. Folgate Insurance Company Limited will be renamed as Hadron UK Insurance Company upon regulatory approval of the name change.

The ratings reflect Hadron group’s 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 (ERM).

The very strong balance sheet strength assessment is supported by the group’s risk-adjusted capitalization, which is assessed currently at the strongest level through the start-up period based on the initial financing structure, as measured by Best’s Capital Adequacy Ratio (BCAR). Hadron group’s operating performance assessment of adequate anticipates that the group’s results will fall within a range of reasonable and expected outcomes for a fronting services organization, which will have a diverse population of managing general agents and credible reinsurance partners. AM Best views Hadron group’s business profile as limited given the execution risk associated with a start-up fronting organization. Hadron group has an experienced management team and through industry relationships has a recognized pipeline of available opportunities. However, Hadron group is entering a competitive area of the industry and will have to develop traits to separate itself from peers through the construction of core competencies. AM Best recognizes the group’s planned implementation of a start-up ERM structure that includes risk management, mitigation efforts and clearly defined reinsurance program provisions.

Negative rating actions could occur if Hadron group’s risk-adjusted capital falls short of needs, operating results fall adversely outside its initial projections, or risk appetite and tolerance levels prove to be inadequate for the group’s profile.

This press release relates to Credit Ratings that have been published on AM Best’s website. 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. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. 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.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. 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. For more information, visit

Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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