Insurance company

AM Best Places Credit Ratings from Topa Insurance Company and Dorchester Insurance Company, Ltd. under review with negative implications

OLDWICK, NJ–(BUSINESS WIRE)–AM Best placed under review with negative implications the financial strength rating of A- (Excellent) and the long-term credit ratings of “a-” (Excellent) of Topa Insurance Company (Calabasas, CA) and its subsidiary, Dorchester Insurance Company, Ltd. (US Virgin Islands). These companies, which are collectively called Topa Insurance Group (Topa), are wholly owned subsidiaries of Topa Equities, Ltd.

The credit rating (rating) actions reflect the need for AM Best to have further discussions with company management regarding strategic business initiatives aimed at improving near-term operational performance. AM Best will review the group’s progress on strategic initiatives, as well as the financial and operational impacts of these initiatives on the group’s operating results. Status under review with negative implications reflects a level of execution risk in strategic initiatives as management looks to improve results going forward following deteriorating underwriting results in 2021 and the first quarter of 2022. In 2021, Topa’s underwriting performance was impacted by other negative reserve developments in the corporate motor liability leg, including the group’s bus program in liquidation, as well as the increase severity of claims and the absence of recent rate increases in this line of business. Additional strategic actions recently implemented by company management to improve underwriting performance in the commercial automotive line of business, including new business moratoriums on certain lines and non-renewal of certain cases, should mitigate the shortcomings. medium-term operational performance. AM Best will continue discussions with Topa management and monitor the strength of the balance sheet, operating performance, business profile and risk management of the business.

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 Rating Activity web page. For more information on the use and limitations of credit rating opinions, please see Best’s Guide to Credit Ratings. 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 the Guide to Proper Use of Best’s Best 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.

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