KBRA Affirms and Withdraws Rating for BlueShore Insurance Company
26 Apr 2023 | New York
KBRA affirms the A- insurance financial strength rating (IFSR) for BlueShore Insurance Company (BlueShore or the company). The Outlook is Stable. Subsequently, KBRA withdraws the rating at the request of the company.
Key Credit Considerations
BlueShore is a property/casualty insurer that writes contractual liability insurance policies which provide warranty and repair coverage for used vehicles primarily through affiliates DriveTime Automotive Group, Inc., SilverRock Automotive, Inc., and Carvana. The rating reflects BlueShore's strong capitalization, excellent underwriting leverage, favorable operating performance, and niche market strategy. BlueShore has exhibited strong surplus growth since 2015 through capital contributions and favorable underwriting results. The rating also incorporates the company's sound financial flexibility with access to additional capital and liquidity through its ultimate parent holding company, Verde Investments, Inc. (Verde), and its beneficial owner, as well as a capital support agreement from Verde. Balancing these strengths are BlueShore's sole reliance on affiliated sales channels to grow which are subject to economic cycles and some exposure to high risk invested assets.
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