E&S startup MGT Specialty secures A-minus AM Best rating
By Mia MacGregor
March 7 - (The Insurer) - AM Best has assigned a financial strength rating of A-minus (Excellent) and a long-term issuer credit rating of “a-minus” (Excellent) to Phoenix-based MGT Specialty Insurance Company, the newly launched E&S arm of "neo-insurer" MGT Insurance.
The outlook for both ratings is stable.
Additionally, AM Best has affirmed the same ratings for MGT Insurance, with a stable outlook. Together, these companies form the newly established MGT Group (MGT).
In January, E&S Insurer first reported that Colorado-based "neo-insurer" MGT Insurance had launched MGT Specialty, spearheaded by newly hired general manager and industry veteran Chad Nitschke.
The ratings reflect MGT’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).
Founded in late 2024, MGT Specialty operates as a wholly owned subsidiary of MGT Insurance.
The company offers E&S products and rate flexibility to complement the admitted products provided by MGT Insurance.
MGT Group specialises in property and liability coverage for small- and medium-sized businesses, with a particular focus on veteran- and minority-owned enterprises.
AM Best stated that the ratings reflect the relationship between MGT Insurance and MGT Specialty, as MGT Insurance will fully reinsure all of MGT Specialty’s premiums and losses through a 100% quota share agreement.
While still in its early stages, MGT has begun writing a modest amount of premium and plans to expand across multiple states in the near future, according to AM Best.
The ratings agency expects the group to maintain a strong level of risk-adjusted capitalisation to support its projected growth and associated risks.
MGT’s ERM program is currently aligned with that of MGT Insurance, which AM Best considers appropriate given the company’s scale and scope. The agency noted that as MGT expands, further refinements — particularly regarding reinsurance protections — will be made.
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