KBRA Assigns Preliminary Rating to Surplus Notes of Clear Blue Specialty Insurance Company
16 Jan 2025 | New York
KBRA assigns a preliminary rating of "BBB” with Stable outlook to surplus notes (“Notes”) to be issued by Clear Blue Specialty Insurance Company (CBSIC) (KBRA Insurance Financial Strength Rating: A-/Stable). As surplus notes, the Notes are deeply subordinated and payments thereon are subject to the prior approval of the Texas Department of Insurance. If any payments are not approved, the scheduled payment will be extended until approval is given. Interest will continue to accrue on any unpaid principal but interest will not accrue on interest. The surplus notes are being issued to support growth in the company’s business.
CBSIC is one of four operating insurance carriers owned by Clear Blue Financial Holdings, LLC (CBFH). All four insurers participate in an intercompany pooling and reinsurance agreement including joint and several liability for one another. The carriers operate in all 50 states, with admitted licenses in 50 states and Puerto Rico. Each carrier writes program business that includes distinct books of commercial auto, homeowners, commercial property, and general liability business that is produced by managing general agents (MGA). Except for any limits or gaps in its quota share (QS) reinsurance, all the risk associated with Clear Blue’s business is ceded to unaffiliated reinsurance companies or to Clear Blue Re (CBRe), which in turn cedes to unaffiliated reinsurers.
To access ratings and relevant documents, click here.