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Business Wire
3 days ago
- Business
- Business Wire
AM Best Affirms Credit Ratings of Occident GCO, S.A.U. de Seguros y Reaseguros
AMSTERDAM--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of 'a+' (Excellent) of Occident GCO, S.A.U. de Seguros y Reaseguros (Occident) (Spain). The outlook of these Credit Ratings (ratings) is stable. The company is a wholly owned subsidiary of Grupo Catalana Occidente S.A. (GCO), the non-operating holding company of the GCO group. The ratings of Occident reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. The ratings also reflect the ratings lift from GCO, which reveals Occident's strategic importance to the GCO group, and its track record of financial and operational support from GCO. These rating actions acknowledge that in March 2025, GCO's majority shareholder, Inoc, S.A. (Inocsa), launched a voluntary takeover bid for all shares comprising the share capital of GCO, seeking the delisting of GCO's shares from the Spanish Stock Exchange. The offer is subject to the mandatory authorization of the Spanish Securities Market Commission. Occident's risk-adjusted capitalisation was at the strongest level at year-end 2024, as measured by Best's Capital Adequacy Ratio (BCAR). Additionally, the company's balance sheet strength assessment benefits from low reinsurance dependence, good liquidity and the absence of external debt. A partially offsetting factor is the company's lack of financial flexibility on a stand-alone basis, as capital is managed at the group level. Occident has a track record of strong operating performance, as evidenced by a five-year (2020-2024) weighted average return-on-equity and combined ratios of 21% and 88%, respectively, as calculated by AM Best, with balanced contributions from technical and investment incomes. The company has maintained strong and consistent underwriting performance across most non-life and life business segments despite competitive market conditions in its domestic market of Spain. Technical earnings are supported by its extensive agency network, which has been in place for a number of years and allows the organisation to manage the underwriting process tightly. Occident operates exclusively in Spain where it holds a top 10 position in several retail lines of business. The company benefits from a solid and diversified franchise with an established presence in all of Spain's regions and the various markets distribution channels. 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 Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
Business Wire
3 days ago
- Business
- Business Wire
AM Best Downgrades Credit Ratings of Utica First Insurance Company
OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has downgraded the Financial Strength Rating to A- (Excellent) from A (Excellent) and the Long-Term Issuer Credit Rating to 'a-' (Excellent) from 'a' (Excellent) of Utica First Insurance Company (Utica First) (Oriskany, NY). The outlook of these Credit Ratings (ratings) has been revised to stable from negative. The ratings reflect Utica First's balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management (ERM). The rating downgrades reflect deterioration in Utica First's operating performance as recent results have been challenged by various market and social inflation conditions, as well as weather-related events. As a result, the company had underwriting losses in each of the past five years and pre-tax operating losses in three of the past five years, which has driven total return metrics to be negative. In addition, other operating performance metrics are aligned with marginally rated companies within the commercial casualty composite. The revised outlooks to stable from negative reflect Utica First's balance sheet assessment of very strong, supported by risk-adjusted capitalization at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR), prudent investment portfolio and strong liquidity measures. In addition, the company has implemented numerous underwriting actions and rate actions to combat the decline in results. As a result, it is expected that operating metrics will stabilize and remain in line with the marginal assessment. AM Best assesses Utica First's business profile as neutral due to its strong position in its target market that includes business owners, specifically small restaurants, and the artisan line of business. AM Best assesses Utica First's ERM as appropriate supported by a developed risk framework and formalized risk appetite and tolerance statements. 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 Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
Business Wire
3 days ago
- Business
- Business Wire
AM Best Revises Outlooks to Negative for Southern Vanguard Insurance Company
BUSINESS WIRE)-- AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of 'a-' (Excellent) of Southern Vanguard Insurance Company (Southern Vanguard) (Houston, TX). The Credit Ratings (ratings) reflect Southern Vanguard'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). The negative outlooks reflect pressure on Southern Vanguard's operating performance given the underwriting volatility in recent years, particularly in 2023 and 2024, which were primarily driven by increased loss frequency and severity of weather-related loss events. Southern Vanguard also has a geographic concentration of risk, which leaves its susceptible to adverse weather conditions and has greatly contributed to the volatility in underwriting results in recent years. While AM Best notes that Southern Vanguard has undertaken initiatives to improve and stabilize its underwriting and operating performance, the ultimate effectiveness of these efforts remains uncertain. A prolonged continuation of unfavorable trends may result in further negative rating actions. Southern Vanguard's balance sheet strength assessment is very strong and is supported by its strongest risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), which remained at the strongest level. Positive factors include its conservative investment portfolio, adequate liquidity, comprehensive reinsurance with strong partners, somewhat offset by elevated underwriting leverage, adverse development experienced in recent years and somewhat limited scale of operations. The limited business profile reflects Southern Vanguard's property predominate book of business and geographic centration in Texas, which exposes its operations to severe weather-related events as observed in recent years. AM Best assess Southern Vanguard's ERM as appropriate for its size and scale of operations with risk identification and controls in place. As noted on June 3, 2025, Southern Vanguard entered into a sale agreement with Wintaai America Inc. (see related press release.) While part of the sale includes an additional capital contribution to Southern Vanguard post-close, the transaction is not expected to have a material impact on the ratings. 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 Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
Business Wire
6 days ago
- Business
- Business Wire
AM Best Assigns Credit Ratings to MTM Assurance Ltd.
BUSINESS WIRE)-- AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of 'bbb+' (Good) to MTM Assurance Ltd. (MTM) (Barbados). The outlook assigned to these Credit Ratings (ratings) is stable. The ratings reflect MTM'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. MTM is a niche insurer operating out of Barbados where it provides revenue loss reinsurance for a limited number of financial services industry partners, which are primarily located in the Canadian market. AM Best's balance sheet strength assessment of very strong is supported by the company's risk-adjusted capitalization being at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). MTM's capital is accreted through its retained earnings with an offset to its projected growth of modest dividends paid up to its shareholders. The company has good liquidity with approximately one fifth of its invested assets held in cash and short-term fixed investments. However, about two thirds of investments are private loans, which elevates balance sheet asset risk. With its limited claims experience, MTM's operating results have been robust for fiscal-year 2024 and near-term results indicate a continuation of this trend. Management maintains strong oversight of operations and has extensive knowledge of its business segment, which contributes to the company's operating stability. In coordination with a third party, the company has developed a process for risk identification, documentation and reporting, as well as for modeling and pricing risk management. 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 Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
Yahoo
6 days ago
- Business
- Yahoo
AM Best Upgrades and Withdraws Credit Ratings of Union Insurance Company P.J.S.C.
LONDON, July 14, 2025--(BUSINESS WIRE)--AM Best has upgraded the Financial Strength Rating to B++ (Good) from B+ (Good) and the Long-Term Issuer Credit Rating to "bbb" (Good) from "bbb-" (Good) of Union Insurance Company P.J.S.C. (Union) (United Arab Emirates). The outlook of these Credit Ratings (ratings) has been revised to stable from positive. Concurrently, AM Best has withdrawn these ratings as the company has requested to no longer participate in AM Best's interactive rating process. The ratings reflect Union'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. The rating upgrades reflect the demonstrated improvements in Union's corporate governance, internal controls and risk management practices. The company's management has taken corrective actions in recent years to reduce balance sheet risk and improve regulatory solvency metrics. As at year-end 2024, the company continues to report a stable solvency coverage ratio of 143% (144% at year-end 2023), which remains in excess of 140% following the first three months of 2025. AM Best expects Union to manage its capital position prudently to maintain a comfortable buffer above regulatory solvency requirements. Union's very strong balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR), at the strongest level in 2024 and is expected to remain at this level prospectively. The assessment also incorporates the company's reduced exposure to investment risk, following management's derisking of the equity and real estate portfolios since 2021, with proceeds reinvested largely in cash and deposits. A partially offsetting factor is Union's high dependence on reinsurance, albeit the associated elevated credit risk is managed through the use of a well-rated reinsurance panel. Union has a track record of adequate operating performance, generating profits in three of the past five years (2020-2024). Union reported a profit of AED 38.3 million (USD 10.4 million) in 2024, driven by positive underwriting and investment returns, with continued profits of AED 13.1 million following the first three months of 2025. AM Best expects greater stability in operating results following the derisking of the asset portfolio and continued focus on underwriting profitability. Union retains its position as a mid-tier composite insurer in the UAE market, where in 2024 it ranked 15th, as measured by insurance revenue of the listed national insurance companies. Despite a well-balanced distribution network, insurance revenue is concentrated in the highly competitive UAE market, where the company originates the majority of its business. Union's top line contracted in 2024, the result of Union's exit from the Oman's life insurance market and its selective underwriting approach. The company has outlined several growth opportunities to compensate partially for lost revenue. 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 Performance Assessments, 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 specialising 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 Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Emily Thompson Senior Financial Analyst +44 20 7397 0291 Jessica Botelho-Young, CA Director, Analytics +44 20 7397 0310 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Sign in to access your portfolio
