Velocity Specialty Insurance Upgraded After FM Acquisition
Deal News | Jun 02, 2025 | EIN
AM Best upgraded the Financial Strength Rating and Long-Term Issuer Credit Rating of Velocity Specialty Insurance Co. (VSIC) to A (Excellent) and a (Excellent) respectively following its acquisition by FM Group in early May 2025. The upgrade is attributed to the strong balance sheet of VSIC and the supportive backing of its new parent company, FM Group. This acquisition is part of FM's strategy to expand into the excess and surplus (E&S) property insurance market, allowing them to enhance their capabilities in this niche and broaden their reach in the middle market sector. The integration of VSIC's technology and innovations into FM's broader operations is expected, benefiting from VSIC acting as a quota share reinsurer on FM's latest program.
Sectors
- Insurance
- Financial Services
Geography
- United States – VSIC is based in Wilmington, Delaware. FM Group operates internationally, but the acquisition and strategic move primarily affect the US market.
Industry
- Insurance – The article discusses the insurance sector, focusing on property insurance, with the acquisition of an insurer specializing in excess and surplus lines.
- Financial Services – The subject involves credit rating upgrades and strategic acquisitions, central to financial service operations and assessments.
Financials
- – No specific financial amounts such as deal size or transactional values are detailed in the article.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Velocity Specialty Insurance Co. (VSIC) | Target company | Company | An insurance firm specializing in excess and surplus lines, recently acquired by FM Group. |
| FM Group | Acquirer | Company | A global business seeking to expand its insurance sector capabilities, particularly in the E&S property insurance market. |
| AM Best | Credit Rating Agency | Company | An organization providing credit ratings for insurance companies, upholding VSIC’s ratings post-acquisition. |