Latest news with #Assessments
Business Wire
a day ago
- 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
2 days ago
- 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
2 days ago
- 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.
Yahoo
2 days ago
- 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 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
3 days ago
- Business
- Business Wire
AM Best Comments on Credit Ratings of Southern Vanguard Insurance Company and Members of Stonetrust Insurance Group Following Wintaai America Inc.'s Announced Acquisition
OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has commented that the Credit Ratings (ratings) of Southern Vanguard Insurance Company (Southern Vanguard) (Austin, TX) and the members of Stonetrust Insurance Group (Stonetrust) (Baton Rouge, LA) remain unchanged following the May 27, 2025, announcement that Wintaai America Inc. (Wintaai), Stonetrust's holding company, will be acquiring Southern Vanguard, subject to regulatory approval. The members of Stonetrust have a Financial Strength Rating (FSR) of A- (Excellent) and Long-Term Issuer Credit Ratings (Long-Term ICR) of 'a-' (Excellent) with positive outlooks. Southern Vanguard has an FSR of A- (Excellent) and a Long-Term ICR of 'a-' (Excellent) with stable outlooks. Wintaai owns 99.94% of Stonetrust and the remaining is owned by various employees. Wintaai will own 100% of Southern Vanguard following conclusion of the transaction, which is pending regulatory approval and expected to close by July 2025. Aside from the transaction cost, Wintaai will also add capital to Southern Vanguard as a post-close contribution. AM Best does not expect the transaction to have any material change to either the rating unit's rating fundamentals or business operations. AM Best will continue to evaluate each of these organizations independently while monitoring the progress and the effects of this transaction over time. Mike Dileo will remain president and chief executive officer of Stonetrust and Cory Moulton will remain president and chief executive officer of Southern Vanguard. Prospectively, the companies will continue to operate independently under common ownership. Stonetrust will maintain its headquarters in Baton Rouge, LA, and Southern Vanguard will maintain its headquarters in Austin, TX. The members of Stonetrust are Stonetrust Commercial Insurance Company and Stonetrust Premier Casualty Insurance Company. Southern Vanguard is a single entity. 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
