When shopping for insurance it’s important to choose a financially stable company that will be there when you need them. One way to assess an insurer’s financial strength is to look at their A.M. Best rating. A.M. Best is a global credit rating agency focused on evaluating the claims-paying ability of insurance companies. They analyze factors like balance sheet strength operating performance, business profile and enterprise risk management. Companies are assigned a letter grade rating from A++ (Superior) to D (Poor).
Tower Hill Insurance is an insurance provider currently holding an A.M. Best rating of A (Excellent), which means they have an excellent ability to meet their ongoing policy and contract obligations. Let’s take a closer look at Tower Hill Insurance and what their A.M. Best rating signifies.
Overview of Tower Hill Insurance
Tower Hill Insurance is an property and casualty insurance company founded in 1964 and based in Gainesville Florida. They provide a range of insurance products including homeowners condo, renters, motorcycle, classic car and more. Tower Hill operates in 47 states and has an extensive network of local agents across the U.S.
As a regional insurer focused on property insurance, Tower Hill has established a strong market presence particularly across the Southeast, Gulf Coast and East Coast states. They market their insurance products directly to consumers as well as through professional independent agents.
Some key facts about Tower Hill Insurance:
- Specialize in property insurance including homeowners, condo, renters
- Operate in 47 states but strongest in FL, GA, SC, NC, NY, NJ
- Over $1.3 billion in assets
- Founded in 1964, headquartered in Gainesville, FL
- A.M. Best rating of A (Excellent)
Overview of A.M. Best Ratings
A.M. Best Company is a global credit rating agency that conducts extensive quantitative and qualitative analysis to assess the financial strength and creditworthiness of insurers and reinsurers. They issue Financial Strength Ratings that reflect their opinion of an insurer’s ability to meet its ongoing insurance policy and contract obligations.
A.M. Best uses a letter scale ranging from A++ (Superior) to D (Poor):
- A++, A+ (Superior) – Exceptionally strong ability to meet financial obligations
- A, A- (Excellent) – Excellent ability to meet financial obligations
- B++, B+ (Good) – Good ability to meet financial obligations
- B, B- (Fair) – Fair ability, but may be vulnerable to adverse conditions
- C++, C+ (Marginal) – Marginal ability, fairly vulnerable to adverse conditions
- C, C- (Weak) – Weak ability to meet financial obligations
- D (Poor) – Insurers in default or danger of default
These easy-to-understand ratings help consumers evaluate an insurer’s financial strength and claims-paying ability. A.M. Best also provides detailed analysis reports to support the ratings.
Tower Hill Insurance’s A.M. Best Rating
Tower Hill Insurance currently holds an A.M. Best Financial Strength Rating of A (Excellent). This means A.M. Best has determined that Tower Hill Insurance has an excellent ability to meet their ongoing insurance obligations.
Specifically, the A (Excellent) rating indicates:
- Strong balance sheet, liquidity and operating performance
- Prudent enterprise risk management and corporate strategy
- Established market presence and strong brand recognition
- Extensive claims paying experience
Tower Hill first earned an A rating from A.M. Best back in 1984 and has maintained the A (Excellent) rating year after year, demonstrating consistency in their financial strength.
Some of the strengths A.M. Best noted that support Tower Hill’s rating include their strong risk-adjusted capitalization, talented management team, market expertise, and technology advancements. Tower Hill invests heavily in technology like advanced data analytics to enhance underwriting and claims handling.
While the rating agency identified some areas for improvement like reducing weather-related risks, the A.M. Best report indicates Tower Hill Insurance has a strong ability to meet obligations despite market changes or economic downturns.
The Importance of a Solid A.M. Best Rating
There are hundreds of insurance providers to choose from, so A.M. Best ratings help consumers narrow options to financially stable companies. Tower Hill’s excellent A rating signifies:
- Proven long-term financial strength – In business since 1964, rated A since 1984
- Confidence they can pay claims – Extensive claims paying experience over 50+ years
- Security during market volatility – Withstood challenges like hurricanes, recessions
- Confidence in leadership – Experienced management team
The claims-paying ability reflected in Tower Hill’s A rating provides peace of mind they will be there for policyholders. Even with risks like weather events and market fluctuations, Tower Hill has demonstrated resilience.
Before purchasing a policy, be sure to evaluate the insurer’s A.M. Best rating. Tower Hill’s long history and excellent A rating indicates they have the financial strength to meet obligations to policyholders, even in difficult circumstances. Choosing an insurer with a solid A.M. Best rating gives consumers important third-party validation and reassurance.
Besides Tower Hill Risk Management, who helps manage the Exchange?
Tower Hill Insurance Exchange is also guided by an annually elected Subscribers Advisory Committee (SAC). No official powers beyond oversight are afforded to the SAC.
Is Tower Hill Insurance Exchange an admitted or excess and surplus (E&S) lines company?
A licensed insurance company, Tower Hill Insurance Exchange is backed by the Florida Insurance Guarantee Association (FIGA). The Exchange also buys insurance from the Florida Hurricane Catastrophe Fund (FHCF) to lower the amount of money it would lose in a hurricane.
Tower Hill Homeowners Insurance review, pros and cons, legit, quote (update 2024)
FAQ
What is the AM Best rating for Tower Hill prime insurance?
What is the financial stability rating of Tower Hill?
What is the insurance rating for the Tower Hill Insurance Exchange?
Who is Tower Hill Insurance owned by?
Is Tower Hill Prime a good insurance company?
Oldwick //BestWire// – AM Best has downgraded the Financial Strength Rating (FSR) to B+ (Good) from B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb-” (Good) from “bbb” (Good) of Tower Hill Prime Insurance Company (Tower Hill Prime) (Gainesville, FL). The outlook of these Credit Ratings (ratings) is negative.
Is Tower Hill Prime a good investment?
The outlook of these Credit Ratings (ratings) is negative. The ratings reflect Tower Hill Prime’s balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.
Does Tower Hill offer home insurance?
The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners . Was this article helpful? Tower Hill offers home insurance policies to Florida homeowners. Find out more about this Florida-based company.
Is Tower Hill Prime going out of business?
Tower Hill Prime has planned to non-renew about 50% of its Florida personal lines business by the end of 2022 and completely exit the segment by 2023. Florida personal lines policies will be moved to Tower Hill Insurance Exchange, a separate entity from Tower Hill Prime created specifically to house this volatile segment.