Business Wire·Jan 28, 2026, 5:02 PM ET

AM Best Affirms Credit Ratings of Members of Spinnaker Insurance Group

AM Best affirmed the A- Financial Strength Rating and "a-" Long-Term Issuer Credit Rating for Spinnaker Insurance Company and its subsidiaries, Spinnaker Specialty Insurance Company & Wingsail Insurance Company.
The Long-Term Issue Credit Rating of "bbb" was affirmed on Spinnaker Insurance Company's $50 million, 9.5% surplus notes due in 2040.
The outlook for all affirmed ratings is stable.
Spinnaker Insurance Group is headquartered in Bedminster, NJ, with its parent company being the publicly traded Hippo Holdings Inc. (NYSE: HIPO).
Ratings reflect a very strong balance sheet supported by a high Best's Credit Adequacy Ratio (BCAR), capital contributions from Hippo, retained earnings, & $50 million in unaffiliated surplus notes issued in 2025.
Spinnaker maintains a conservative investment portfolio of long-term bonds & short-term holdings, along with a comprehensive reinsurance program.
Operating performance is deemed adequate, driven by profitable underwriting, investment income, & fee-based income despite recent earnings variability & catastrophe losses.
The business profile is limited as Spinnaker cedes most premiums via quota share arrangements & focuses on short-tail lines like homeowners & renters' insurance.
A 2025 strategic partnership between Hippo & The Baldwin Group Inc. (NASDAQ: BWIN) is expected to expand Spinnaker's underwriting portfolio.
Ratings could be negatively impacted if Hippo's financial trends fail to improve as expected.