Latest news with #Assessments
Yahoo
3 days ago
- Business
- Yahoo
AM Best Affirms Credit Ratings of ERIKA Försäkringsaktiebolag (publ)
AMSTERDAM, June 18, 2025--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of "a-" (Excellent) of ERIKA Försäkringsaktiebolag (publ) (Erika) (Sweden). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect Erika's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management. Erika's strongest level of risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR), along with its conservative and liquid investment portfolio and prudent reserving, collectively contribute to an overall balance sheet strength assessment of very strong by AM Best. The company has a track record of strong operating performance, evidenced by a five year (2020-2024) weighted average return-on-equity ratio of 13.5%. Erika's results have been underpinned by robust and stable underwriting margins, with the company recording a technical surplus in each of the past 19 years (2006-2024). Erika is the primary provider of travel insurance to people travelling worldwide on the various international education programmes offered by Education First (EF). All business is sourced solely from EF tour operators, which limits Erika's control over distribution and growth. Erika's limited business profile assessment also reflects its relatively small portfolio, concentrated within one line of business. However, the risks associated with this concentration are mitigated partially by the company's relatively low product risk and geographic diversification. 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 pertinent 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 additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Juan A. Villaescusa Prades Financial Analyst +31 208081162 Dr. Mathilde Jakobsen Senior Director, Analytics +31 20 808 3118 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318
Business Wire
4 days ago
- Business
- Business Wire
AM Best Downgrades Credit Ratings of Oregon Mutual Group Members
OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has downgraded the Financial Strength Rating to B- (Fair) from B++ (Good) and the Long-Term Issuer Credit Ratings to 'bb-' (Fair) from 'bbb' (Good) of Oregon Mutual Insurance Company and Western Protectors Insurance Company, which are domiciled in McMinnville, OR and collectively referred to as Oregon Mutual Group. The outlooks of these Credit Ratings (ratings) have been revised to negative from stable. The ratings reflect Oregon Mutual Group's balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and marginal enterprise risk management (ERM). The rating actions reflect the continued deterioration in Oregon Mutual Group's balance sheet metrics, which has been primarily driven by continued surplus erosion in three consecutive years that continued into first-quarter 2025. The surplus decline in 2025, was a result of continued adverse loss reserve development from several large claims, impacted by economic and social inflation, in addition to smoke related claims attributed to the California wildfires. Through first-quarter 2025, the group's surplus position declined by $6.5 million (12.8%) which led the overall risk-adjusted capitalization to decline to adequate levels. Despite Oregon Mutual Group's undertaking initiatives to improve profitability, efforts have not gained meaningful traction and have not effectively insulated the group's condition, which led to its ERM assessment being lowered to marginal. Oregon Mutual Group's operating performance is assessed as marginal due to volatile underwriting results in recent years, which have been driven by economic and social inflations. While the group has undertaken initiatives to improve profitability, recent results have trailed its peer composite. Oregon Mutual Group's underwriting and operating ratios, as well as its return-on-revenue and return-on-equity measures, compare unfavorably to the composite averages. The group's business profile is assessed as limited, reflecting its focus on commercial lines, with over half its book in California on a direct written premium basis. California has historically had a challenging regulatory environment that has impacted the group's results in recent years. 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 pertinent 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 additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
Business Wire
05-06-2025
- Business
- Business Wire
AM Best Revises Outlooks to Negative for Machinery Insurance, Inc., An Assessable Mutual Insurer
BUSINESS WIRE)-- AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of 'bbb' (Good) of Machinery Insurance, Inc., An Assessable Mutual Insurer (Machinery) (Jacksonville, FL). The Credit Ratings (ratings) reflect Machinery's balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, very limited business profile and appropriate enterprise risk management (ERM). The negative outlooks reflect the deterioration in Machinery's net underwriting income and pre-tax operating income over the most recent five-year period, driven by a significant decline in premiums over most of that period. The decline in premiums was attributable to the intentional graduation of policies to larger surety writers by its agency, which was accelerated by inflationary trends, as well as increased competition by larger surety writers in the company's own small account market niche. Consequently, Machinery's operating performance metrics have fallen out of line in recent years with the median of 'strong' assessed rating units within its fidelity and surety composite. A continuation of this trend could result in a reduction of the company's 'strong' operating performance assessment. However, Machinery has continued to grow surplus organically in each of the last five years through net investment income, net underwriting income and capital gains on its equity portfolio. Despite the deterioration in operating performance, Machinery maintains a strong overall balance sheet, support by risk-adjusted capitalization at the strongest level. Machinery's business profile is assessed as 'very limited' due to its geographic and product concentration, as well as its intention to remain a tax-exempt organization under federal law, which limits its revenue to less than $600,000 annually. Machinery's ERM is considered appropriate for its risk profile, commensurate with the complexity and scale of the company. Machinery's small size allows for management to remain actively involved in all risk assessments and continuing to develop its risk appetite through strict underwriting practices. 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 pertinent 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 additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
Yahoo
04-06-2025
- Business
- Yahoo
AM Best Assigns Issue Credit Rating to Spinnaker Insurance Company's New Surplus Notes
OLDWICK, N.J., June 04, 2025--(BUSINESS WIRE)--AM Best has assigned a Long-Term Issue Credit Rating of "bbb" (Good) to the $50 million, 9.5% surplus notes, due March 2040, issued by Spinnaker Insurance Company (Spinnaker) (Chicago, IL). The outlook assigned to this Credit Rating (rating) is stable. The notes are issued to unaffiliated external parties. The proceeds from the issuance of these surplus notes are expected to be used to redeem existing affiliated surplus notes from Spinnaker's parent, Hippo Holdings Inc., and to build capital and surplus to support future growth. Spinnaker's financial leverage and interest coverage ratios will remain within AM Best's guidelines for its current ratings. 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 pertinent 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 additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. 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 over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Yizhou Hong Senior Financial Analyst +1 908 882 1692 Jacqalene Lentz Senior Director +1 908 882 2011 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318
Business Wire
04-06-2025
- Business
- Business Wire
AM Best Downgrades Credit Ratings of The Dominion of Canada General Insurance Company and Travelers Insurance Company of Canada Following Announced Sale to Definity Financial Corporation; Places Credit Ratings Under Review With Various Implications
BUSINESS WIRE)-- AM Best has downgraded the Financial Strength Rating (FSR) to A- (Excellent) from A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to 'a-' (Excellent) from 'a' (Excellent) of The Dominion of Canada General Insurance Company (Dominion). At the same time, AM Best has downgraded the FSR to A+ (Superior) from A++ (Superior) and the Long-Term ICR to 'aa-' (Superior) from 'aa+' (Superior) of Travelers Insurance Company of Canada (TICC). In addition. AM Best has placed Dominion's Credit Ratings (ratings) under review with developing implications, while AM Best has placed TICC under review with negative implications. Dominion and TICC are domiciled in Toronto, Ontario, Canada. The ratings of Dominion reflect its balance sheet strength, which AM Best assesses as strongest, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management (ERM). The ratings of TICC reflect its balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate ERM. The Travelers Companies, Inc. (TRV) (NYSE: TRV) announced that it signed an agreement to sell the personal insurance business and most of the commercial insurance business of Travelers Canada, which include Dominion and TICC, to Definity Financial Corporation. The transaction is expected to close in the first quarter of 2026, subject to regulatory approvals and other customary closing conditions. The announcement has triggered the removal of the TRV lift from Dominion and TICC, which have been placed under review, and while Dominion will have developing implications, TICC will have negative implications as a result of the higher rating compared with the rating of the new parent company at close. AM Best will continue to monitor events related to this transaction and provide updates as conditions warrant. 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 pertinent 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 additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
