In a significant milestone for Dellwood Specialty Insurance Company, the industry rating agency AM Best has awarded the firm an A- (Excellent) financial strength rating. This rating acknowledges Dellwood’s robust balance sheet, a solid business plan, sound enterprise risk management, and strong operating performance. The company specializes in providing excess and surplus lines insurance to property/casualty wholesale brokers, with a particular focus on small and middle enterprise (SME) risks. Despite the firm being relatively new, founded in March by former AIG executives Michael Price and Kean Driscoll, it has already demonstrated impressive growth and stability. Significant financial backing from several prominent insurers has bolstered Dellwood’s capital to over $250 million, surpassing initial targets and showcasing strong investor confidence.
Strategic Leadership and Financial Foundation
The leadership team at Dellwood is one of its core strengths. Co-founder Michael Price serves as the CEO, while Kean Driscoll holds the positions of President and Chief Underwriting Officer. Their leadership is complemented by Thomas Connolly, another former AIG executive, who has joined the ranks. AM Best has underscored the importance of this experienced leadership team in their rating decision, emphasizing their extensive industry expertise and successful long-term track records. This has imbued confidence in Dellwood’s ability to effectively compete in the marketplace, even as they navigate legal complexities. The substantial backing from industry heavyweights such as RenaissanceRe, PartnerRe, Starr Insurance, and Central Insurance further fortifies Dellwood’s financial foundation, highlighting a promising trajectory for the firm.
Legal Challenges and Market Reception
However, Dellwood and its founders have not been without their challenges. Shortly after the company’s inception, AIG filed a lawsuit against the firm and its executives, alleging violations of employment contracts and misappropriation of trade secrets. Although these claims against the individual executives have since been dropped, AIG’s legal action against Dellwood remains ongoing. Despite this legal cloud, Dellwood’s market reception has been overwhelmingly positive. The AM Best A- rating provides external validation of the company’s sound strategy and financial health, reassuring investors, brokers, and policyholders alike. This excellent rating, coupled with strong financial backing and an adept leadership team, places Dellwood in a favorable position within the specialty insurance market, confidently poised for growth and stability ahead.
