Insurer's ratings boosted after acquisition

AM Best has announced its new ratings for Folgate Insurance Company after it was acquired by US-based Hadron Specialty.

The ratings agency said it had upgraded the financial strength rating (FSR) to A- (excellent) from B (fair) and the long-term issuer credit rating to “a-” (excellent) from “bb+” (fair).

The outlook assigned to these credit ratings has been described as stable.

“The ratings reflect Hadron group’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management,” AM Best said.

Acquisition

Hadron acquired Folgate in January 2024 after receiving $250m (£197m) in capital from private equity firm Altamont Capital Partners and other institutional investors.

Folgate, which is based in London, specialises in commercial insurance and underwrites several classes, including property, general liability and professional liability.

“Folgate was established in 1887 and has continuously stood out as a well run and capitalised insurance entity,” said Ian Russell, group chief executive and chief underwriting officer of Folgate.

“I couldn’t be more delighted about our bright future with Hadron and look forward to working with its team to serve the specialty MGU market in the UK.”