|[July 31, 2014]
Knight Insurance Group Reviewing Stable Growth
LOS ANGELES --(Business Wire)--
Knight Insurance Group is working with A.M. Best to review Knight's
growth in 2013 through a detailed quantitative analysis. Knight
Insurance Group members are rated A- (Excellent) by A.M. Best, who has
placed the Knight Insurance Company, Ltd., and KnightBrook Insurance
Company under review with negative implications. In 2013, Knight
Insurance Group experienced a 77.2% growth in written premium from the
year prior. The review process will include a quantitative evaluation of
loss reserves and premium adequacy.
"We certainly acknowledge the growth we have had in 2013," stated Don
Hankey, Knight Insurance Group Chairman. "We continue to have good,
profitable business, have increased reserves and surplus appropriately,
and have injected a substantial amount of additional capital into both
companies to very comfortably support them."
Knight Insurance Group's premium to surlus ratio remains stable and it
is discriminatory in its program selection, sticking to its ROI
threshold hurdle rate of 30%. While this has limited the ability to grow
in prior years, Knight has seen new opportunities in the last two years
as other program carriers have ceased or limited their program business.
Knight's management is confident that the quantitative analysis will
result in an affirmation of the stability of the underlying growth
"We have been fortunate from a business perspective to be in the market
conditions we are currently experiencing, with better rate per risk and
an ability to be more selective in our program relationships," stated
Eric Jarvis, President of Knight Insurance Group. "This has translated
into significant growth for the organization. We will work with A.M.
Best during the review process to help create a high level of comfort
with the fundamental economics of the underlying business."
For more information, contact Eric D. Jarvis, CEO of Knight Insurance
Group at 323-692-4033.
About Knight Insurance Group: The Knight Insurance Group focuses
upon well-managed niche program business on an admitted and non-admitted
basis. Knight is part of the $3.7 Billion, privately held Hankey Group
of Companies. Its insurance companies include KnightBrook Insurance
Company, Knight Re, and Knight Specialty Insurance Company.
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