Latest news with #Long-TermIssuerCreditRatings
Business Wire
5 days ago
- Business
- Business Wire
AM Best Affirms Credit Ratings of Everspan Indemnity Insurance Company and Its Affiliates
BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and Long-Term Issuer Credit Ratings (Long-Term ICR) of 'a-' (Excellent) of Everspan Indemnity Insurance Company (Phoenix, AZ) and its affiliates, collectively referred to as Everspan Group. The outlook of these Credit Ratings (ratings) is stable. (See below for a listing of the companies and ratings.) The ratings reflect Everspan Group'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 balance sheet strength assessment reflects risk-adjusted capitalization supportive of the group's current and near-term risk exposures. Capital was initially provided by Ambac Financial Group, Inc. [NYSE: AMBC]. AM Best assesses Everspan Group's operating performance as adequate based on execution and implementation of its business plan during its formative stages. The group began actively writing premium during second-quarter 2021, and results through first-quarter 2025 have consistently remained within AM Best's expectations. AM Best views Everspan Group's business profile as limited. This reflects its position as a participating fronting carrier and specialty program writer operating within the competitive fronting space. Everspan Group provides services for a diverse mix of managing general agents aligned with highly rated reinsurance partners. The enterprise retains a strategic level of net premium on select programs and employs a gross lines approach to underwriting. Everspan Group's ERM framework reflects a clearly defined risk appetite structure; it addresses the heightened risks inherent in the group's business profile and was developed by its experienced management team. Negative rating actions could occur if there is a material decline in Everspan Group's risk-adjusted capitalization, if operating results fall short of projections, or if the enterprise fails to execute its business profile strategy. The FSR of A- (Excellent) and the Long-Term ICRs of 'a-' (Excellent) have been affirmed with stable outlooks for the following members of Everspan Group: Everspan Indemnity Insurance Company Everspan Insurance Company Greenwood Insurance Company Consolidated Specialty Insurance Company Providence Washington Insurance 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.
Business Wire
7 days ago
- Business
- Business Wire
AM Best Affirms Credit Ratings of N&D Union Mutual Insurance Group Members
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) for the members of N&D Union Mutual Insurance Group (N&D Union). The outlook of these Credit Ratings (ratings) is stable. (Please see below for a detailed listing of the companies and ratings.) The ratings reflect N&D Union'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 ratings reflect the consolidation of the members of Norfolk & Dedham Group Pool (Norfolk & Dedham) and the members of Union Mutual of Vermont Companies (Union Mutual) following the groups entering into an affiliation agreement on Nov. 5, 2024, following regulatory approval, as well as adding Union Mutual Fire Insurance Company to an existing pooling agreement between the members of Norfolk & Dedham effective Jan. 1, 2025. New England Guaranty Insurance Company and Community Mutual Insurance Company continue to participate in 100% quota share reinsurance agreements with Union Mutual Fire Insurance Company and receive reinsured ratings. The new group (N&D Union) consisting of the members of Norfolk & Dedham and Union Mutual is based on explicit support including the pooling agreement and the implementation of a catastrophe reinsurance program effective July 1, 2025, for all members. Implicit support includes the integration of various functions including Finance, Actuarial and IT Security, as well as the combined branding and communications of both Norfolk & Dedham and Union Mutual. The Norfolk & Dedham companies continue to be headquartered in Dedham, MA, while the Union Mutual companies continue to be headquartered in Montpelier, VT. Joel Murray is the President & Chief Executive Officer of the Norfolk & Dedham companies and the Chair of the integrated Board of N&D Union. Lisa Keysar is the President & Chief Executive Officer of the Union Mutual companies and a Union Board member. N&D Union's very strong balance sheet is based on the group's strongest risk-adjusted capitalization as measured by Best's Capital Adequacy Ratio (BCAR). Balance sheet strength is further supported by a strong liquidity position, modest underwriting leverage and a conservative investment risk profile. Substantial capital protection is provided through a comprehensive reinsurance program. N&D Union's operating performance of adequate is based on solid underwriting results and operating performance over the most recent five-year period, as demonstrated by its five-year average combined and operating ratios, which both compare favorably to the industry composite. The five-year average combined ratio is driven by a below average loss and loss adjustment expense ratio, which is partially offset by an above average underwriting expense ratio, largely related to higher commission costs typical of New England writers. N&D Union's business profile of neutral is based on its well-established market presence in its operating territories, predominantly Massachusetts, with extensive knowledge of local, regulatory and legislative insurance issues. Personal and commercial line products are also written in New York, New Jersey, Vermont, New Hampshire, Maine, Rhode Island and Connecticut. Geographic spread has been enhanced to a broader area in the Northeast due to the recent affiliation. Products are distributed through independent agents that are regularly monitored and evaluated for business development, mix and profitability. N&D Union has developed an appropriate ERM program that supports its risk profile. The group's Chief Executive Officers act as the chief risk officers in charge of overseeing ERM. The group uses sophisticated risk impact management and economic capital models to identify and assess the impact of risks. The FSR of A (Excellent) and the Long-Term ICRs of 'a' (Excellent) have been affirmed with stable outlooks for the following members of N&D Union Mutual Insurance Group: Norfolk & Dedham Mutual Fire Insurance Company Dorchester Mutual Insurance Company Fitchburg Mutual Insurance Company The FSR of A (Excellent) and the Long-Term ICRs of 'a' (Excellent) have been affirmed with stable outlooks for the newly added members of N&D Union Mutual Insurance Group: Union Mutual Fire Insurance Company New England Guaranty Insurance Company, Inc. Community Mutual Insurance 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.
Business Wire
01-07-2025
- Business
- Business Wire
AM Best Removes From Under Review With Developing Implications and Affirms Credit Ratings of Certain Members of Health Care Service Corp Medicare & Supplemental Group Members
BUSINESS WIRE)-- AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of 'a' (Excellent) of select members of Health Care Service Corp Medicare & Supplemental Group (HCSC Medicare & Supplemental Group) (Chicago, IL). At the same time, AM Best has removed from under review with developing implications and downgraded the Long-Term ICRs to 'a' (Excellent) from 'a+' (Excellent) and affirmed the FSRs of A (Excellent) of certain members of HCSC Medicare & Supplemental Group. The outlook assigned to all these Credit Ratings (ratings) is stable. (Please see below for a detailed listing of companies and ratings.) The rating actions follow the completion of the acquisition by the parent organization, Health Care Service Corporation, a Mutual Legal Reserve Company (HCSC), of all The Cigna Group's Medicare Advantage, Medicare Part D, Medicare Supplement and Care Allies businesses. The transaction closed earlier this year. As part of the transaction, HCSC is obtaining 30 legal entities, 13 of which are statutory legal insurance companies. These entities will be managed together under HCSC Medicare Holdings, a newly formed intermediate holding company. After discussions with company management regarding the planned operations, capitalization, projections and integration of these businesses, the financials of the rated legal entities in the group were consolidated under one uniform rating unit based on its combined financial strength assessments. The ratings reflect HCSC Medicare & Supplemental Group's balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, neutral business profile, appropriate enterprise risk management (ERM) and the financial and operational support of its parent, HCSC. While capitalization had been pressured at a few of the legal entities, capital levels were bolstered as part of the final capitalization at sale, in line with the terms of the transaction. Additionally, HCSC has committed to fund additional capital throughout the course of 2025 as needed to support growth and additional projected acquisition related costs and operating losses. The 2024 Best's Capital Adequacy Ratio (BCAR) is at the strongest level but is expected to decline for a period of time during 2025 based on a combination of premium growth related to novated business at closing and additional incremental growth. Based on discussions with management, AM Best projects that this will be offset by capital contribution from HCSC as needed, and that the BCAR should improve to strongest again by year-end 2025. The balance sheet strength also reflects the sound consolidated absolute capital position of the group at approximately $2.7 billion, as well as its relatively modest underwriting leverage at 3.5 times and strong liquidity measures. Invested assets are conservatively allocated, held largely in investment grade fixed-income securities, and it is anticipated that the allocation will be similar under management by the parent going forward. The HCSC Medicare & Supplemental Group will contribute to net premium growth in core target markets for the organization, driven by membership growth across its suite of product offerings. This should help the broader organization offset attrition in its Medicaid line of business, as growth in the Medicare-related business is expected to continue. AM Best notes that consolidated underwriting and net income trends have been very challenged by changes to Medicare reimbursement and higher-than-expected medical cost trend, both of which are expected to continue in 2025. Management is focused on its star ratings and risk payment, as well as cost and expense management and efficiencies across its various Medicare Advantage plans as a part of improving future performance. Investment income has been steady and has meaningfully contributed to net earnings. The group's core offerings are Medicare Advantage, Medicare Part D and Medicare Supplement products, which are offered across numerous states that are outside of the parent's core market. The group has exhibited consistent historical membership growth in its main markets driven by government business, primarily Medicare Advantage, Medicare supplement and Medicare Part D, and other supplemental accident & health (A&H) offerings, which should complement and bolster its diversification. While competition remains strong in all lines of business, the new entities should help the organization continue to compete well and lift its market position. Given the Blue Cross Blue Shield businesses provide a significant competitive advantage in network relationships and consumer outreach, this should further help the expansion of these business lines. The ERM program will be integrated and managed at the ultimate parent level at HCSC, and it is well developed with a comprehensive risk identification, monitoring, mitigation and oversight process. Finally, these entities benefit from rating enhancement as part of the HCSC organization. They will be managed with a consolidated cost structure that management expects to lead to improved profitability and economies of scale and will expand HCSC's geographic presence and diversification with the addition of business. The new membership base and revenues will aid in providing additional scale and capabilities to HCSC's Medicare Advantage and supplemental health segments. The overall organization will grow financially through future revenue and operationally though a broader national footprint with deeper product penetration. These entities will also immediately contribute to HCSC's Medicare Advantage growth and market share, which has been a goal over the past few years. The FSR of A (Excellent) and the Long-Term ICRs of 'a' (Excellent) have been removed from under review with developing implications and affirmed, with stable outlooks assigned for the following members of HCSC Medicare & Supplemental Group: HealthSpring Life & Health Insurance Company, Inc. Bravo Health Mid-Atlantic, Inc. Bravo Health Pennsylvania, Inc. HealthSpring of Florida, Inc. The Long-Term ICRs have removed from under review with developing implications and downgraded to 'a' (Excellent) from 'a+' (Excellent), and the FSR of A (Excellent) removed from under review with developing implications and affirmed, with stable outlooks assigned for the following members of HCSC Medicare & Supplemental Group: Cigna National Health Insurance Company Medco Containment Life Insurance Company Loyal American Life Insurance Company Provident American Life and Health Insurance Company American Retirement Life Insurance Company Medco Containment Insurance Company of New York Cigna HealthCare of Colorado, Inc. 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
13-06-2025
- Business
- Business Wire
AM Best Affirms Credit Ratings of Solen Versicherungen AG and Noble Assurance Company
LONDON--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Ratings of A (Excellent) and the Long-Term Issuer Credit Ratings of 'a+' (Excellent) of Solen Versicherungen AG (SVAG) (Switzerland) and Noble Assurance Company (Noble) (Texas, United States). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect SVAG's 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. In addition, the ratings factor in rating enhancement from SVAG's ultimate parent, Shell plc (Shell), reflecting the company's importance to the group as a well-entrenched risk management tool. SVAG's balance sheet strength is underpinned by risk-adjusted capitalisation at the strongest level, as measured by Best's Capital Adequacy Ratio (BCAR). AM Best expects the captive's BCAR scores to remain above the minimum required for the strongest assessment level prospectively, reflecting the insurer's strategy to maintain sufficient capital buffers to absorb a series of large losses. The balance sheet strength assessment also factors in a concentration of assets in intragroup investments, as well as the large gross and net line sizes offered by the captive relative to its capital base. SVAG has a track record of strong operating performance, underpinned by robust underwriting results, as demonstrated by a five-year (2020-2024) weighted average combined ratio of less than 25%. Prospective underwriting performance is subject to potential volatility due to the captive's exposure to high-severity low-frequency losses, given its large net line sizes relative to its premium base. In addition, the captive is exposed to elevated market risk through its management of the Shell group's foreign currency warehousing activities, which drives a level of variability in overall earnings. Nonetheless, SVAG's key performance metrics are expected to remain supportive of a strong assessment over the medium term. SVAG's business profile assessment reflects its key role in supporting Shell's overall risk management framework, as the group's principal captive. SVAG's non-life business mostly consists of offshore and onshore property and liability risks, as well as the associated business interruption covers. SVAG also writes a small book of life business, which is derived from the reinsurance of the group's pension liabilities. The ratings of Noble reflect its status as a member of the SVAG rating unit and a subsidiary of Shell. As a captive domiciled in Texas, Noble underwrites Shell's U.S. business and cedes 100% of its risks to SVAG, its sister company, through a quota share reinsurance agreement. AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated throughout the world. For current Best's Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit 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
05-06-2025
- Business
- Yahoo
AM Best Upgrades Credit Ratings of Members of Midwest Insurance Group
OLDWICK, N.J., June 05, 2025--(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. 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 Joni Cerbone Senior Financial Analyst +1 908 882 1690 Rosemarie Mirabella Director +1 908 882 2125 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
