AM Best Improves Atlantic Casualty Insurance Company Credit Ratings; Affirms the credit ratings of the auto owners’ insurance company and most affiliates


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OLDWICK, New Jersey, December 09, 2021– (COMMERCIAL THREAD) –AM Best raised the financial strength rating (FSR) to A + (superior) from A (excellent) and the issuer’s long-term credit rating (long-term ICR) to “aa-” (superior) from “a +” (excellent) from Atlantic Casualty Insurance Company (Atlantic Casualty) (Goldsboro, NC). The outlook for these credit ratings (ratings) has been revised from positive to stable.

At the same time, AM Best confirmed the FSR of A ++ (Superior) and the long term ICR of “aa +” (Superior) of Auto-Owners Insurance Company (Auto-Owners) (Lansing, MI) and its four properties / accidents in exclusive property. (P / C) companies that make up the Automobile Owners Insurance Group (AOIG). At the same time, AM Best confirmed the FSR of A + (Superior) and the long-term ICR of “aa-” (Superior) for members of Concord Group Insurance Companies (Concord Group), which is headed by Concord General Mutual Insurance company (Concord General) (Concord, NH). AM Best also confirmed the FSR of A- (Excellent) and the long-term ICR of “a-” (Excellent) from Auto-Owners Specialty Insurance Company (AOSIC) (Dover, DE). In addition, AM Best has confirmed the FSR of A (Excellent) and the long-term ICR of “a” (Excellent) of California Capital Insurance Company (Monterey, CA) and its subsidiaries, which operate under an intercompany pooling agreement, collectively referred to as Capital Insurance Group (Capital). In addition, AM Best confirmed the FSR of A + (Superior) and the long-term ICR of “aa-” (Superior) of Auto-Owners Life Insurance Company (AOLIC) (Lansing, MI), which is also a company wholly owned subsidiary of Auto-owners. The outlook for these ratings is stable. (See below for a detailed list of companies).

Atlantic Casualty’s ratings reflect the strength of its balance sheet, which AM Best considers to be the strongest, as well as its adequate operational performance, neutral business profile and appropriate enterprise risk management (ERM).

Atlantic Casualty’s rating improvements reflect its increased level of integration, as well as the tangible operational benefits and synergies arising from ownership by automobile owners in various functions including, but not limited to: investments; actuarial services; product development; reinsurance; complaints; marketing; and information technology. In addition, this rating action recognizes the strategic importance of Atlantic Casualty within the organization of automobile owners, particularly evident in the company’s access to the distribution channel of automobile owners, which has contributed to premium growth, while maintaining favorable operational performance.

AOIG’s ratings reflect the strength of its balance sheet, which AM Best considers to be the strongest, as well as its very good operational performance, favorable business profile and appropriate ERM.

The AOIG has shown generally improved operating performance in recent years. The AOIG also maintains a well-balanced company profile between personal and business lines and P&C activities. Through its acquisition of Atlantic Casualty and AOSIC in 2016, its affiliation with Concord General in 2017 and its acquisition of Capital in 2019, AOIG has further broadened its business profile from a product and geographic perspective. These positive rating factors are partially offset by its exposure to credit risk associated with the Michigan Catastrophic Claims Association.

Concord Group’s ratings reflect the strength of its balance sheet, which AM Best considers to be the strongest, as well as its adequate operational performance, neutral business profile and appropriate ERM.

Concord Group’s ratings reflect its risk-adjusted capitalization, which is rated in the strongest category, as measured by Best’s capital adequacy ratio (BCAR), as well as its favorable operating performance over the past several years. . The ratings also reflect Concord Group’s strategic position within the automobile owners organization, as well as the significant operational and financial benefits that Concord Group has achieved as a result of its April 2017 affiliation with automobile owners. .

AOSIC’s ratings reflect the strength of its balance sheet, which AM Best considers to be very strong, as well as its adequate operational performance, very limited business profile and appropriate ERM.

AOSIC is a shell company that plans to provide excess and excess line coverage to small and medium-sized commercial businesses in North Carolina. AOSIC’s risk-adjusted capitalization supports its business plan, which includes projections for moderate premium growth. In addition, the business is led by a management team that has a proven track record of generating favorable operating results at its sister company, Atlantic Casualty, and possessing in-depth knowledge of surplus lines and P / C business affairs. These positive rating factors are partially offset by the expected concentration of non-admitted firms in a State.

Capital’s ratings reflect the strength of its balance sheet, which AM Best considers very strong, as well as its marginal operational performance, neutral business profile and appropriate ERM.

Capital’s ratings reflect its risk-adjusted capitalization, which is rated in the highest category, as measured by BCAR, as well as the recent improvement in the group’s operational performance. The ratings also reflect the substantial explicit and implicit support received from auto owners since December 2018, which followed severe net losses and erosion of surpluses due in part to the California wildfires in 2017 and 2018, as well as the unfavorable evolution of reserves during the previous accident years in 2017.

AOLIC’s ratings reflect the strength of its balance sheet, which AM Best considers very strong, as well as its strong operational performance, neutral business profile and appropriate ERM.

The ratings take into account the integral role of AOLIC and its positive contribution to its parent organization P / C, its diversified product portfolio, its favorable level of risk-adjusted capitalization and its high quality investment portfolio.

The FSR of A ++ (Superior) and long-term ICRs of “aa +” (Superior) have been confirmed, each with a stable outlook, for Auto-Owners Insurance Company and its wholly-owned P / C subsidiaries:

  • Home insurance company

  • Homeowners Insurance Company

  • Homeowners Insurance Company

  • Southern Homeowners Insurance Company

The FSR of A + (Superior) and the long-term ICRs of “aa-” (Superior) have been confirmed, each with a stable outlook, for the following members of Concord Group Insurance Companies:

  • Concord General Mutual Insurance Company

  • Green Mountain Insurance Company, Inc.

  • State mutual

  • Sunapee Mutual Fire Insurance Company

  • Vermont Accident Insurance Company, Inc.

The FSR of A (Excellent) and long-term ICRs of “a” (Excellent) were confirmed, each with a stable outlook, for the following members of Capital Insurance Group:

  • California Capital Insurance Company

  • Eagle West Insurance Company

  • Monterey Insurance Company

  • Nevada Capital Insurance Company

This press release relates to credit ratings published on the AM Best website. For all rating information relating to the publication and relevant disclosures, including details of the office responsible for the publication of each of the individual ratings referenced in this publication, please see AM Best Recent rating activity Web page. For more information on the use and limits of the credit rating

notice, please see Best Credit Score Guide. For more information on the proper use of Best’s credit scores, Best’s preliminary credit reports, and AM Best’s press releases, please see Guide to Proper Use of Best Ratings and Reviews.

AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. Based in the United States, the company operates in more than 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 AM Best Rating Services, Inc. and / or its affiliates. ALL RIGHTS RESERVED.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20211209006008/en/

Contacts

Robert Valentina, CPCU
Senior Financial Analyst
+1 908 439 2200, ext. 5291
[email protected]

Raymond Thomson, CPCU, ARe, ARM
Associate Director
+1 908 439 2200, ext. 5621
[email protected]

Christophe sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
[email protected]

Jim peavy
Director, Communications
+1 908 439 2200, ext. 5644
[email protected]

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