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AM Best Removes From Under Review With Developing Implications and Affirms Credit Ratings of FHM Insurance Company

AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of FHM Insurance Company (FHM) (Jacksonville, FL). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect FHM’s balance sheet strength, which AM Best categorizes as very strong, as well as its marginal operating performance, limited business profile and marginal enterprise risk management (ERM).

The rating actions follow Florida Citrus, Business & Industries Fund’s (FCBI) decision to terminate the previously announced transaction under which FCBI would acquire FHM Insurance Services, a Florida insurance agency and managing general agent of FHM. FCBI’s decision was due to the unsuccessful approval or consent of the Florida Office of Insurance Regulation.

FHM’s rating affirmations are attributable to its strongest level of risk-adjusted capitalization, partially offset by unfavorable operating performance and surplus erosion in recent years. The stable outlook assigned to the ratings primarily reflects AM Best’s expectation that FHM’s operating performance will improve over the near term, and that its balance sheet strength will remain supportive of the current rating levels.

AM Best will continue to monitor FHM’s progress on strategic initiatives and the overall impact on its balance sheet strength, operating performance, business profile and ERM.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


Michael T. Venezia
Senior Financial Analyst
+1 908 439 2200, ext. 5034

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