AM Best has revised its outlook from stable to positive for Fidvest US, a pure captive insurance company based in South Carolina and owned by Fidelity Management & Research (FMR).
The agency also affirmed Fidvest’s financial strength rating at ‘A-‘ (Excellent) and its long-term issuer credit rating at ‘a-‘ (Excellent).
The ratings underscore Fidvest’s very strong balance sheet, marginal operating performance, limited business profile, and its suitable enterprise risk management (ERM) practices.
Fidvest’s business profile is considered limited, as it provides coverage for professional liability, workers’ compensation, property, automobile liability, general liability, and cyber coverage for its parent company through deductible reimbursement and high excess policies.
Fidvest maintains an ERM framework that is appropriately scaled for a company of its size. As part of FMR, it benefits significantly from and is integral to its parent company’s ERM framework.
The ratings are further bolstered by support from its ultimate parent, FMR, a large and diversified financial services organization. This includes Fidvest’s strategic importance to FMR and FMR’s capacity to provide financial support to Fidvest if needed.
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