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.

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