Velocity Specialty Insurance Company Gets Credit Boost Post-Acquisition by FM Group
Deal News | May 30, 2025 | Re-Insurance News
AM Best has upgraded the credit ratings of Velocity Specialty Insurance Company (VSIC), following its acquisition by FM Group. The Financial Strength Rating was raised to A from A- and its Long-Term Issuer Credit Rating to a from a-, with both ratings maintaining a stable outlook. This upgrade reflects the improved balance sheet strength and operational profile of VSIC, now underpinned by FM's enhanced ratings and more substantial capital base. The acquisition allows FM to leverage VSIC's resources to expand its excess and surplus lines capabilities and fortify its position in the mid-market property segment. Additionally, anticipated technology and analytical innovations developed by VSIC are set to be integrated into FM's broader operations, potentially enhancing efficiency and competitive edge.
Sectors
- Insurance
- Private Equity
Geography
- United States – The companies involved, FM Group and Velocity Specialty Insurance Company, operate within the U.S. market, which is relevant for the insurance and private equity sectors discussed in the article.
Industry
- Insurance – This industry classification is relevant as the article discusses credit rating upgrades and operational changes within an insurance company, Velocity Specialty Insurance Company.
- Private Equity – The acquisition of VSIC by FM Group likely involves private equity dynamics as FM plans to leverage VSIC’s capabilities to strengthen its market position.
Financials
- Not specified – The deal's financial terms, including the acquisition price, have not been disclosed in the article.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Velocity Specialty Insurance Company | Target | Company | An insurance provider whose credit ratings have been upgraded following its acquisition by FM Group. |
| FM Group | Bidding Company/Buyer | Company | The acquiring company that plans to leverage VSIC to expand its capabilities. |
| Velocity HoldCo LLC | Selling Company/Vendor | Company | The previous owner of Velocity Specialty Insurance Company before its acquisition by FM Group. |
| AM Best | Rating Agency | Company | A credit rating agency that upgraded VSIC’s credit ratings post-acquisition. |