AM Best Assigns Credit Rating to Sunz Insurance Company

Congrats to our friends at Sunz for the A- (Excellent) rating!

Sunz Insurance

OLDWICK, N.J., July 16, 2021–(BUSINESS WIRE)–AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to SUNZ Insurance Company (SUNZ) (Bradenton, FL). The outlook assigned to these Credit Ratings (ratings) is stable.

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

SUNZ was formed in 2005 and primarily writes high deductible worker’s compensation coverage utilizing its proprietary technology-driven platform focused on collateral management for its medium and small business clients.

SUNZ’s balance sheet assessment is supported by its risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR) in current periods, projected future scores, and under stress scenarios. SUNZ balance sheet assessment also considers the capital contributions in support of recent premium growth, improved reserving patterns exhibited during the recent five-year period, its comprehensive reinsurance program diversified among highly rated participants, and a conservative investment portfolio that matches assets with liabilities.

SUNZ’s operating performance is assessed as adequate as evidenced by average pre-tax return on revenue measures that trail AM Best’s workers’ compensation industry composite over the recent five- and 10-year timeframe. SUNZ’s business profile assessment is limited as 49.9% of premiums are written in two states, California and Florida, when considering both direct and assumed premiums. Operating as a single line workers’ compensation insurer, SUNZ’s limited business profile exposes the company to the potential legislative, regulatory or judicial changes occurring within these states. SUNZ’s ERM approach is considered appropriate for the scale, scope and complexity of the organization.

While positive rating actions are unlikely over the near term, positive rating actions could be taken on SUNZ’s ratings should operating performance improve and be sustained at a level that is in line with peers with stronger operating performance assessments.

Key factors that could result in negative rating actions on SUNZ’s ratings and outlooks include a weakening in operating earnings to a level that is not supportive of the adequate operating performance assessment.

Negative rating actions could occur should adverse reserve development or strong premium growth result in a weakening in risk-adjusted capitalization that falls short of supporting the very strong balance sheet assessment.

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 use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210716005296/en/

Contacts

Gordon McLean
Senior Financial Analyst

+1 908 439 2200, ext. 5304
gordon.mclean@ambest.com

Robert Raber
Director
+1 908 439 2200, ext. 5696
robert.raber@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

Sunz Holdings Advocates for Employee Rights and Business Protection

Great article from our friends at Sunz regarding their efforts to protect small businesses and worksite employees. Bravo!

Bradenton, FL, April 12, 2021 (GLOBE NEWSWIRE) — SUNZ Holdings has long served as the bridge connecting employees, businesses, and lawmakers. As a national insurance provider, the company is in the unique position of being able to effectively translate the needs of businesses while also highlighting the potential voids in employee protection. This ability to see all sides and understand how various lawmakers across the country draft legislation has become an important part of protecting employees under the Professional Employer Organization (PEO) model.

Providing perspective is essential to the ongoing relationship between government entities and the business community. Naturally, the two want to work together to form a symbiotic relationship, which ultimately leads to a stable workforce and robust economy. However, sometimes it can be difficult for the two sides to communicate effectively, often leaving workers in the crossfire. The role of SUNZ is to create an ongoing conversation that values the views of both parties and seeks to achieve a shared understanding. Through advocacy, education, and transparency, SUNZ creates that conversation in state capitals and board rooms across the country.

To foster an open dialogue with lawmakers, SUNZ will meet one-on-one or in small committee groups with representatives. These meetings serve as working thought leader sessions where representatives can dive into important constituent issues specific to employment and workers’ compensation. Intimately understanding these issues, SUNZ provides lawmakers with a clear picture of how each decision will ultimately affect workers and businesses.

Take, for example, HB 1305 introduced in the Florida House of Representatives in March of 2021. On its own, the bill does little to protect employees or ensure they are provided safe working conditions. That is a significant problem considering that according to the Bureau of Labor Statistics, 2.8 million nonfatal injuries occurred in the private sector in 2019 alone (2020 statistics are not available). One step further, according to the BLS, one worker died every 99 minutes in that same year. With such high numbers of workplace injuries, it is no surprise that American companies spend roughly $1 billion in workers’ compensation per week.

Putting increased burden on PEO organizations, the bill was missing a crucial point of view. Working closely with lawmakers, the SUNZ team illustrated how “The Gap” left vulnerable employees uninsured. Since the early days of workmen’s compensation, “The Gap” has allowed contractors to underreport their employee roster to cut costs. By underreporting, contractors alleviate themselves of the responsibility and expense of insurance while employees are left in coverage limbo.

In the above case of HB 1305, SUNZ serves a crucial role as voice and translator. Through its working relationship with legislators, SUNZ has carefully illustrated the reality of “The Gap.” If passed, this legislation would make it virtually impossible for PEOs to work with small construction companies, but it would not put a stop to the real problem, which is fraud. As a third party, the SUNZ team can provide a bird’s eye view of the situation and effectively advocate for the employees who suffer when fraud occurs.

HB 1305 is only one of many national legislative priorities that the SUNZ team monitors on a daily basis. Clients of the organization come to SUNZ looking to streamline their employee insurance coverage while also providing the highest level of protection for their workforce. This need takes many different forms depending on the industry and is heavily influenced by state and federal legislation.

Legislation can have profound and extended consequences for companies and their employees. While lawmakers often have the best intentions, it is vital that advocates provide a picture of how a decision will affect those downstream of it. SUNZ has and will continue to serve as that advocate, giving voice to the concerns of its clients and everyday employees nationwide. This mission is not about deal-making or lobbying; it is about providing companies and workers with the confidence that they and their families are protected in a risky world.

SUNZ Holdings, LLC is the parent company of SUNZ Insurance, a national workers’ compensation insurance company headquartered in Bradenton, Florida. SUNZ Insurance develops unique workers’ compensation programs that deliver innovative and tailored solutions to protect businesses and their employees. SUNZ understands its clients’ needs for fluidity, offering workers’ compensation insurance options that do not begin and end with the printed policy. SUNZ believes that a safe work environment and a healthy workforce are the foundation for a successful business. There are several affiliate companies within the SUNZ Holdings enterprise that provide related and ancillary services to the workers’ compensation insurance industry. These companies include Next Level Administrators, WatchPoint, Avalon Subrogation Partners, and Ascential Care Partners. For more information, visit www.sunzinsurance.com.

CONTACT: Rick Leonard SUNZ Insurance 9413063077 rleonard@sunzinsurance.com Matt Solomon HCP Associates 8133180565 msolomon@hcpassociates.com

https://finance.yahoo.com/news/sunz-holdings-advocates-employee-rights-184100488.html

Sunz Holdings Announces Significant Investment from Blackstone Tactical Opportunities

Congrats to our friends at Sunz!!

Bradenton, Fla. (Dec. 23, 2020) – SUNZ Holdings, LLC (“SUNZ”) announced today that funds managed by Blackstone Tactical Opportunities (“Blackstone”) have acquired a significant stake in the company to help fuel SUNZ’s continued expansion. Terms of the transaction were not disclosed.

SUNZ is a leading provider of workers compensation insurance and related services such as policy administration, claims administration and customer support. SUNZ delivers technologically advanced solutions for its customers – with a specialized focus on risk sharing programs for Professional Employer Organizations, staffing companies and large organizations.

Menes Chee, a Senior Managing Director at Blackstone, said, “SUNZ is exceptionally well positioned for future growth. Blackstone is excited to partner with their first-rate management team to help the company continue to expand into new markets and verticals so it can best serve its customers.”

Steve Herrig, CEO of SUNZ, said, “This partnership should propel SUNZ to a new level by enabling us to pursue new market opportunities and expand our national footprint. We look forward to a synergistic collaboration with Blackstone and to further accelerating the expansion of our specialized programs.”

About SUNZ Holdings, LLC

SUNZ Holdings, LLC is the parent company of SUNZ Insurance, a national workers’ compensation
insurance company headquartered in Bradenton, Florida. SUNZ Insurance develops unique workers’ compensation programs that deliver innovative and tailored solutions to protect businesses and their employees. SUNZ understands its clients need for fluidity, offering workers’ compensation insurance options that do not begin and end with the printed policy. SUNZ believes that a safe work environment and healthy workforce is the foundation for a successful business. There are several affiliate companies within the SUNZ Holdings enterprise that provide related and ancillary services to the workers compensation insurance industry. These companies include Next Level Administrators, WatchPoint, Avalon Subrogation Partners, and Ascential Care Partners. For more information, visit www.sunzinsurance.com.

About Blackstone

Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long- term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our $584 billion in assets under management include investment vehicles focused on private equity, real estate, public debt and equity, life sciences, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.

About Tactical Opportunities

Tactical Opportunities (Tac Opps) is Blackstone’s opportunistic investment platform. The Tac Opps team invests globally across asset classes, industries and geographies, seeking to identify and execute on attractive, differentiated investment opportunities. As part of the strategy, the team leverages the intellectual capital across Blackstone’s various businesses while continuously optimizing its approach in the face of ever-changing market conditions.

Contacts

Blackstone
Matt Anderson
+1-212-390-2472 matthew.anderson@blackstone.com ###