Insurance company

AM Best revises outlook to stable for Greenville Casualty Insurance Company

OLDWICK, NJ–(BUSINESS WIRE)–AM Best revised the outlook from positive to stable and affirmed the financial strength rating of B (fair) and the long-term issuer credit rating of “bb+” (fair) of Greenville Casualty Insurance Company (Greenville Casualty) (Greer , SC).

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 Company’s deteriorating underwriting results were driven by a sharp decline in net premiums written due to the wind-up of Greenville Casualty’s existing non-standard automobile program for private passengers in South Carolina and a delay in the implementation of its new ISO-based program. The deterioration in underwriting results was also driven by the settlement of two bad faith claims.

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 increase in policyholder surplus and reduction in premium underwriting in recent years. five-year period. Management expects premiums to rebound on the back of its new auto program in South Carolina and improved claims experience from initiatives implemented by the 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 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.

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