AM Best revised the outlook from positive to stable and affirmed the financial strength rating of B (passable) and the issuer’s long-term credit rating of “bb+” (passable) from
The credit ratings (ratings) reflect Greenville Casualty’s balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and marginal business risk management.
The revised outlook from stable to positive reflects the substantial deterioration in Greenville Casualty’s underwriting and operating performance in 2021, which has resulted in a moderate decline in policyholder surplus. These results are significantly below management’s financial projections. The deterioration in the company’s underwriting results was driven by a sharp decline in net premiums written due to the settlement of existing Greenville Casualty contracts
Rating affirmations were based on Greenville Casualty’s highest level of risk-adjusted capitalization, as measured by Best’s capital adequacy ratio (BCAR), and modest underwriting leverage, which stemmed from growth modest from policyholder surplus and reduced premium writing in recent years. five-year period. Management expects premiums to rebound with its new
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Source: AM Best