Insurance company

AM Best Raises Atlantic Casualty Insurance Company’s Financial Strength Rating to A+ Superior

OLDWICK – 05 JANUARY 2022 – AM Best raised the financial strength rating (FSR) from A+ (Superior) to A (Excellent) and the issuer’s long-term credit rating (Long-term ICR) to “aa-” (Superior) from “a+” (Excellent) to Atlantic Casualty Insurance Company (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 ICRs of “aa+” (superior) of Auto-Owners Insurance Company (Auto-Owners) (Lansing, MI) and its four properties / Wholly Owned Accident (P/C) that make up the Automobile Owners Insurance Group (AOIG). At the same time, AM Best confirmed FSR of A+ (higher) and long-term ICRs of “aa-” (higher) for members of Concord Group Insurance Companies (Concord Group), which is led by Concord General Mutual Insurance Company (Concord General) (Concord, NH). AM Best has 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 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 arrangement, collectively referred to as Capital Insurance Group (Capital). In addition, AM Best confirmed the FSR of A+ (higher) and the long-term ICR of “aa-” (higher) from Auto-Owners Life Insurance Company (AOLIC) (Lansing, MI), which is also a wholly owned subsidiary of Auto-Propriétaires. 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 rates as the strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

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

AOIG’s ratings reflect the strength of its balance sheet, which AM Best rates as the strongest, as well as its very strong operating performance, favorable business profile and appropriate ERM.

AOIG has shown generally improved operational performance in recent years. AOIG also maintains a well-balanced business profile between personal and commercial lines, and P/C business. 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 rates as the strongest, as well as its adequate operating 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 few years. . The ratings also reflect Concord Group’s strategic position within the Auto-Owners organization, as well as the significant operational and financial benefits Concord Group has realized as a result of its April 2017 affiliation with Auto-Owners.

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

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

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

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

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

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

FSR of A++ (Superior) and long-term KPIs of “aa+” (Superior) were 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 the long-term ICRs of “a” (Excellent) have been 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 Assurance 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 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 Preliminary Credit Scores, and AM Best’s press releases, please see Guide to the Proper Use of Best Scores and Ratings.

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.

Topics
AM Best Casualty Carriers