The rating reflects Trident’s low underwriting leverage and adequate reinsurance program, including increased use of quota share reinsurance to manage risk-adjusted capital as the company grows. The rating also reflects the Reciprocal’s conservative, high-quality investment portfolio, which has no below investment grade fixed income or equity exposure and had an average credit quality of AA- as of 2Q26. Additionally, as a recently formed insurer, Trident has no legacy reserve liabilities related to prior catastrophe events or All Other Perils claims. KBRA also views Trident’s management team as experienced in the Florida property insurance market and believes the company has made progress building its operating infrastructure and distribution network.
Balancing these strengths is Trident’s high financial leverage, with $32 million of surplus notes outstanding representing approximately 114% of policyholders’ surplus as of 2Q26. Trident also remains exposed to key person…
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