Insurance company

AM Best assigns credit ratings to Concord Specialty Insurance Company; Confirms credit ratings from Lexington National Insurance Corporation

OLDWICK, New Jersey, November 04, 2022–(BUSINESS WIRE)–AM Best assigned a financial strength rating (FSR) of A- (Excellent) and a long-term credit rating (long-term ICR) of “a-” (Excellent) to Concord Specialty Insurance Company (Concord Specialty) (Pierre, SD). The outlook assigned to these credit ratings (ratings) is negative. At the same time, AM Best confirmed the FSR of A- (Excellent) and the long-term ICR of “a-” (Excellent) of Lexington National Insurance Corporation (Lexington National) (Stuart, FL). The outlook for these ratings is negative. Together, these companies form Revolutionary Insurance Group (the group).

Concord Specialty’s ratings reflect its role as a member of the Revolutionary Insurance Group and the explicit support provided to Concord Specialty through the implementation of a pooling agreement with Lexington National.

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

The very good level of strength of the group’s balance sheet is supported by its higher level of risk-adjusted capitalization, as measured by Best’s capital adequacy ratio (BCAR), and is somewhat offset by limited growth in surpluses due to annual shareholder dividends. The group’s limited business profile recognizes that the group is transitioning from a surety-only surety to a multi-line niche carrier. AM Best considers Revolutionary Insurance Group’s ERM practices to be appropriate for its risk profile.

The group’s negative outlook reflects a moderate deterioration in its risk-adjusted capitalization as well as increased underwriting leverage metrics which lag AM Best’s composite loyalty and bonding averages. The outlook also reflects the group’s declining operating and underwriting results over the past five years, which have also been below the composite average. However, the group’s underwriting performance has shown signs of improvement in recent years.

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 relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Assessment Activity Web page. For more information on the use and limitations of credit rating opinions, please see Best Credit Score Guide. For more information on the proper use of Best’s Credit Scores, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see Guide to Proper Use of Best’s Ratings and Reviews.

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 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 © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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