Latest news with #IssuerCreditRatings
Business Wire
01-07-2025
- Business
- Business Wire
AM Best Removes From Under Review With Negative Implications and Affirms Credit Ratings of Blue Cross and Blue Shield of Vermont and Its Subsidiary
BUSINESS WIRE)-- AM Best has removed from under review with negative implications and affirmed the Financial Strength Rating (FSR) of C++ (Marginal) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of 'b+' (Marginal) of Blue Cross and Blue Shield of Vermont (BCBSVT) and its subsidiary, The Vermont Health Plan, LLC, collectively known as Blue Cross and Blue Shield of VT Group (BCBSVT Group). The outlook assigned to the FSR is stable, while the outlook assigned to the Long-Term ICRs is negative. The Credit Ratings (ratings) reflect BCBSVT Group's balance sheet strength, which AM Best assesses as weak, as well as its marginal operating performance, limited business profile and marginal enterprise risk management. The negative outlook assigned to the Long-Term ICRs reflects AM Best's concern regarding the continued pressure on BCBSVT Group's balance sheet strength driven by very weak risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), and deteriorating balance sheet strength metrics due to sizable operating losses through 2024. BCBSVT Group's balance sheet strength remains challenged due to the group's level of capital, both absolute and risk-adjusted, which has declined over the past few years. BCBSVT's capital and surplus was supported in late 2024 with a surplus note issued by Blue Cross Blue Shield of Michigan Mutual Insurance Company, an affiliated company. Even with the surplus note, the company remains under a capital restoration plan by Vermont's Department of Financial Regulation. As a result of the surplus note, the overall quality of capital has declined, as over 50% of capital is in the form of a surplus note. Additionally, liquidity metrics have had a declining trend from 2020 to 2024, driven by poor underwriting performance. BCBSVT Group has reported underwriting losses in four out of the past five years driven by higher utilization, as well as medical and pharmacy costs, which have been higher than expected. All insured segments were impacted negatively by higher medical and pharmacy claim trends in 2024. The company is focused on improving underwriting profitability via rate increases and other initiatives that should lead ultimately to an increase in its capital position. The limited business profile reflects the challenging regulatory environment in Vermont, with the Department of Financial Regulation overseeing regulatory capital while the Vermont Green Mountain Care Board has oversight on rate increases. The objectives of the two regulatory authorities have a history of not being aligned, which historically has hindered BCBSVT Group's ability to obtain requested rate increases. BCBSVT Group maintains a large market share in Vermont, where a large majority of businesses are small in scale, and maintains a large presence in the Affordable Care Act marketplace. However, the group faces limited competition in these markets due to few companies participating. 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
20-06-2025
- Business
- Yahoo
AM Best Downgrades Issuer Credit Rating of Safety Insurance Group, Inc. and Its Key Subsidiaries
OLDWICK, N.J., June 20, 2025--(BUSINESS WIRE)--AM Best has downgraded the Long-Term Issuer Credit Ratings (Long-Term ICR) to "a" (Excellent) from "a+" (Excellent) and affirmed the Financial Strength Rating of A (Excellent) of Safety Insurance Company, Safety Indemnity Insurance Company, Safety Property and Casualty Insurance Company and Safety Northeast Insurance Company. The outlook of the Long-Term ICRs has been revised to stable from negative while the outlook of the FSR is stable. Collectively, these companies are referred to as Safety Group. At the same time, AM Best has downgraded the Long-Term ICR to "bbb" (Good) from "bbb+" (Good) of Safety Insurance Group, Inc. (Delaware) [NASDAQ/GS: SAFT], the publicly traded parent of Safety. The outlook of the Long-Term ICR has been revised to stable from negative. All companies are domiciled in Boston, MA, except where specified. The Credit Ratings (ratings) reflect Safety's balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM). The Long-Term ICR downgrades reflect a trend of deterioration in Safety Group's risk-adjusted capitalization position since year-end 2021, as measured by Best's Capital Adequacy Ratio (BCAR). This reduction is attributed to the group's absolute surplus level declining while net written premium, net reserves and Safety Group's probable maximum loss estimate have all increased since. Inflationary trends and rate increases have also had a significant impact. Ultimately, these factors have led to Safety Group's risk-adjusted capitalization position declining to the strong level following 1Q 2025, down from the strongest level at year-end YE 2021. Company management has indicated its strategic goal is to remain within the strong range. AM Best assesses Safety Group's operating performance as strong due to five-year average pretax and total returns on revenue and equity that compare favorably with AM Best's private passenger and homeowners' composite averages. The group's five-year average combined ratio remains below breakeven and outperforms the composites as well. AM Best assesses Safety Group's business profile as neutral due to its consistent position as a top five carrier in the personal auto, commercial auto and homeowners' market in Massachusetts with a modestly diverse product offering. AM Best also views Safety Group's ERM as appropriate, supported by its comprehensive risk management framework that is well-documented in its Own Risk Solvency Assessment report. 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 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 Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Justin Aimone Financial Analyst +1 908 882 1595 Christopher Draghi Director +1 908 882 1749 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
05-06-2025
- Business
- Business Wire
AM Best Upgrades Credit Ratings of Members of Midwest Insurance Group
BUSINESS WIRE)-- AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to 'a' (Excellent) from 'a-' (Excellent) of Midwest Insurance Company (Springfield, IL), West River Insurance Company (Sioux Falls, SD) and Brickyard Insurance Company (Fort Wayne, IN), collectively known as Midwest Insurance Group (Midwest). The outlook of these Credit Ratings (ratings) has been revised to stable from positive. The ratings reflect Midwest's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM). Midwest's balance sheet strength is supported by its strongest risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR). The group's capital position reflects consistent operating performance and a diversified, well-managed investment portfolio that provides a steady stream of net investment income, which coupled with historically strong favorable reserve development, liquidity and cash flow metrics supports the very strong balance sheet assessment. The group's operating performance has been upgraded to strong from adequate. This assessment is supported by sustained profitability in the group's underwriting results combined with increasing levels of investment income. Midwest's operating performance compares very favorably with the workers' compensation composite on a five-year and 10-year basis contributing to strong, organic growth in surplus. Additionally, return-on-revenue and return-on-equity metrics have outpaced the composite over the past five years. Midwest maintains modest business concentration risk, operating as a monoline workers' compensation insurer focusing on small- to medium-sized agency partners. As a monoline workers' compensation insurer, its limited business profile leaves it susceptible to competitive pressures in certain jurisdictions, as well as potential legislative, regulatory or judicial changes. This concern is mitigated partly by the group's strategy to ensure responsiveness to its local agency base. 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
30-01-2025
- Business
- Yahoo
AM Best Affirms Credit Ratings of James River Group Holdings, Ltd. and Its Subsidiaries
OLDWICK, N.J., January 30, 2025--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a-" (Excellent) and the rated operating subsidiaries of James River Group Holdings, Ltd. (JRG Holdings) (Bermuda) [NASDAQ: JRVR]. In addition, AM Best has affirmed the Long-Term ICR of "bbb-" (Good) of JRG Holdings. The outlook of these Credit Ratings (ratings) is negative. (See below for a detailed listing of the subsidiaries.) The ratings of JRG Holdings' subsidiaries reflect their balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and marginal enterprise risk management (ERM). This rating affirmations reflect JRG Holdings' substantial efforts to protect its balance sheet, particularly through recent adverse development cover and loss portfolio transfer reinsurance transactions, as well as de-risking its operations via the sale of JRG Reinsurance Company, Ltd. Additionally, the rating affirmations consider the group's ongoing dedication to and investment in its ERM initiatives. The negative outlooks reflect the execution risks associated with the group's projections as presented to AM Best. Failure to meet these projections may result in downward rating pressure. The FSR of A- (Excellent) and the Long-Term ICRs of "a-" (Excellent) have been affirmed with negative outlooks for the following subsidiaries of JRG Holdings: James River Insurance Company James River Casualty Company Falls Lake National Insurance Company Stonewood Insurance Company Falls Lake Fire and Casualty Company 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 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 Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Gordon McLeanSenior Financial Analyst+1 908 882 Edin ImsirovicDirector+1 908 882 Christopher SharkeyAssociate Director, Public Relations+1 908 882 Al SlavinSenior Public Relations Specialist+1 908 882 Sign in to access your portfolio
Yahoo
28-01-2025
- Business
- Yahoo
AM Best Revises Issuer Credit Rating Outlook to Positive for Members of Arbella Insurance Group
OLDWICK, N.J., January 28, 2025--(BUSINESS WIRE)--AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Ratings (Long-Term ICRs) and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICRs of "a" (Excellent) of Arbella Mutual Insurance Company and its three pooled insurance entities: Arbella Protection Insurance Company, Arbella Indemnity Insurance Company and Covenant Insurance Company (Farmington, CT). These companies are collectively known as Arbella Insurance Group (Arbella). The outlook of the FSR is stable. All companies are domiciled in Quincy, MA, unless otherwise specified. The Credit Ratings (ratings) reflect Arbella's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). The revised Long-Term ICR outlook to positive from stable is based on Arbella's key operating performance metrics coming into line with strong assessed rating units within its private passenger standard auto and homeowners composite on both a five-year and 10-year average basis. Additionally, Arbella has reported significantly improved underwriting results and operating performance in 2024, which were driven by management's numerous pricing, underwriting and claims initiatives. Arbella maintains very strong balance sheet strength, reflective of its strongest level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), modest underwriting leverage measures relative to its composite, strong liquidity measures, consistently favorable loss reserve development and a conservative investment risk profile. The balance sheet is protected from significant weather-related events through a comprehensive catastrophe reinsurance program. The group's risk-adjusted capitalization has trended upward recently from exposure reduction initiatives and increased catastrophe reinsurance coverage purchases. AM Best assesses Arbella's business profile as neutral, reflective of its long-standing market presence and market expertise in Massachusetts, strong distribution network and experienced management team. Arbella's ERM is assessed as appropriate for its risk profile, which is driven by its established ERM structure, refined risk management processes and comprehensive reinsurance program, which mitigates tail risk. 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 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 Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Kenneth Tappen Senior Financial Analyst +1 908 882 2389 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Christopher Draghi Director +1 908 882 1749 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Sign in to access your portfolio
