Folgate, which will relaunch as an insurer next month, was assigned a financial strength rating of B from AM Best.
The business, which will partner with A-rated Amlin to write a £35m book in its first year, also received a long-term issuer credit rating of BB+ and an outlook of stable.
It follows the acquisition of Folgate from Towergate in 2014, by APC Underwriting. The relaunch will see Folgate become the risk bearing-entity for the business written by APC.
Folgate CEO Brian Russell said the rating was a “milestone” for the company.
He added: “It has long been the ambition of the board to bring this 140 year established UK London-based insurer back to where it belongs.
“Now that this news has been announced, we can focus on our broker community by creating a stable offering based on their needs. We will look to further strengthen our rating over the next 24 months.”
Folgate Insurance Company Ltd will be going live in December and writing business from 1 January 2019.
- Top 100 Insurtech: Quarter four update
- Charles Taylor bolsters liability team by hiring senior sextet from Vericlaim
- Roundtable: Is a single customer view taking off in insurance?
- I work in insurance: Stephanie Horton, River Canal Rescue
- Insurtech diary: Getting stuck into insurance
- Analysis: The mystery of the missing Insurance Fraud Taskforce report
- Gallagher Bassett acquires claims management firm