Latest news with #Best
Business Wire
3 hours ago
- Business
- Business Wire
AM Best Upgrades Credit Ratings of New Horizon Insurance Company
BUSINESS WIRE)-- AM Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to 'a-' (Excellent) from 'bbb+' (Good) of New Horizon Insurance Company (NHIC) (Houston, TX). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect NHIC'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 (ERM). The ratings upgrade for New Horizon reflects its trend of strong and consistent operating performance over the past three years, driven by modest loss and loss adjustment expense ratios that have resulted in favorable net income over this time-frame and have notably outperformed the commercial automobile composite averages. The company's strong operating performance is further evidenced by pre-tax and total return on revenue and return on equity metrics that have reached the double-digit level in four of the past five years. This has resulted in five-year averages for these metrics that compare favorably with respective peer averages by a wide margin. These favorable trends continued through the first quarter of 2025, resulting in reported underwriting and net income. New Horizon has successfully grown its premium base in recent years through rate increases and organic growth across all lines and is expected to continue to do so over the near-term. New Horizon's strong operating results have been accretive to the balance sheet strength, with risk-adjusted capital and underwriting leverage metrics improving as its capital has accumulated 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.
CNBC
a day ago
- Business
- CNBC
Best Stocks: 2025 will be known as the year when boring utilities joined the growth team
(This is The Best Stocks in the Market , brought to you by Josh Brown and Sean Russo of Ritholtz Wealth Management.) Josh — It's quite possible that 2025 will be remembered as the year where defensive utilities became growth stocks. As Sean explains below, this sector is the second best performing group of stocks in the entire S & P 500 this year. This is remarkable when you consider that this is not a "risk-off" year in which investors reach for stocks that should hold up well in a downturn. It's a risk-on year so far and defensive stocks like consumer staples and healthcare are lagging. Utilities are bucking the trend and accompanying the Nasdaq and S & P 500 to new highs. Why? Two letters: A.I. Last year, Citi analysts estimated that, by 2030, data centers could be responsible for as much as 11% of the demand for electricity in America, up from 4.5% today. Utilities are responding to the massive capex being invested in cloud computing, data center infrastructure and the AI buildout with large investments of their own to modernize and raise capacity. These investments are allowing the utility companies to go back to their regulators and apply for electricity rate increases from their customers. When they win a formal rate case, estimates for profits and dividend payouts go higher, driving their share price up. DTE Electric, the regulated utility owned by one of the names on our list, DTE Energy (DTE) won its rate case this January when the Michigan Public Service Commission approved a $217 million rate increase - meaning a jump of $4.61 per customer, per month going forward. WEC Energy Group (WEC) , another name on our Best Stocks list, won a rate case last year which led to 6.9% and 8.5% rate increases for 2025 for the two Wisconsin electric and gas utilities the company controls. As utilities make this pitch to the commissions that oversee their capex spend and pricing, they are increasingly citing "increased electric demand from data center and tech sector development." This argument, along with the ongoing need to spend on forest maintenance and management against wildfire risks, is winning left and right. The combination of demand from AI usage and infrastructure along with the willingness of municipalities to invest in grid modernization and environmental protection has created a massive bull market in the utility sector. We'll show you four names with solid chart set-ups below, in addition to our regular Monday data drop. Sector Leaderboard As of 7/28/2025, there are 154 names on The Best Stocks in the Market list. Top Sector Ranking: Top Industries: Top 5 Best Stocks by Relative Strength: Sector Spotlight: Sean — Despite signs of a meme-stock revival, utilities—a traditionally defensive sector—are the second-best performing group in the S & P 500 YTD. Ninety percent of the utility sector is above their 50-day and 200-day moving average. Compare that to the overall S & P 500 which has 73% of constituents above their 50-day and only 64% above their 200-day moving average. This is not a market where traditional defensive sectors are leading. While utilities are second best, health care, energy, and staples are three of the four bottom performing sectors in 2025. In the meme-crazed year of 2021, from January through July, utilities were the worst performing sector year-to-date up 6%, while 9 other sectors were up double digits. Similar to how Spotify and Netflix are looking more defensive, utilities are getting wrapped up in a more growth-oriented story. A major driver is the rise in electricity usage tied to artificial intelligence. Data centers supporting AI workloads are consuming an increasing share of the U.S. power grid and are expected to rise from about 4.5% today to 11% by 2030. Look at what the market is telling us. There is some rotation under the surface and a handful of the names on our list are setting up nicely as the AI theme plays out. Ameren Corp (AEE) Ameren is a regulated utility company that generates and distributes electricity and natural gas to customers in Missouri and Illinois, paying a 2.84% dividend. The company operates a diverse mix of energy sources and is focused on grid modernization and transitioning to cleaner energy. CenterPoint Energy Inc (CNP) CenterPoint Energy , which pays a 2.29% dividend, delivers electricity and natural gas to customers primarily in Texas, Indiana, and surrounding states. It focuses on utility operations and infrastructure, having divested most of its non-utility businesses in recent years. DTE Energy Co (DTE) DTE Energy is a diversified energy company serving customers with electric and gas utility services, paying a 3.13% dividend yield. It also has non-utility operations in power and industrial projects, and is investing in renewable energy and carbon reduction projects. DTE's presence in Detroit is notable in the age of the electric vehicle. WEC Energy Group Inc (WEC) WEC Energy Group, which has the highest dividend yield of the four we mentioned at 3.26% provides electricity and natural gas to customers in the mid west. WEC is primarily focused on energy-related infrastructure investments and clean energy projects. Together, these utilities — AEE, CNP, DTE, and WEC — may seem like traditional defensive plays, but they're increasingly at the center of one of the most powerful growth trends in the market. As data center demand surges, the companies powering the grid are becoming essential enablers of the AI revolution. These stocks are bending to a more growth-oriented narrative, where consistent power delivery is becoming just as valuable as the innovation itself. Risk Management Josh — My favorite chart among the utility names on our list right now is DTE. After the company reported earnings in May, Wells Fargo raised its price target from $145 to $154, citing the company's reaffirmed guidance through the year 2027 and management's "sustained confidence in achieving targets at the higher end of projections" for the next few years. If you're buying this stock, it should be for an investment, not a trade, given how important the dividend yield will be for the total return you can potentially receive. Trading in and out of a dividend stock means missing out on that component of the return. Analysts currently expect DTE to raise its current 3%-ish dividend yield by 6% to 8% per year, each year, through the end of this decade. With a current payout ratio between 50% and 60%, DTE has plenty of room to increase this portion of its income it returns to you every year. So long as management maintains its forward guidance, I would use dips in the stock as opportunities to accumulate as opposed to selling or trimming exposure. For the risk-averse, consider the 50- week moving average as your line in the sand. You can see that this has been important support for the uptrend back to early 2024. DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. INVESTING INVOLVES RISK. EXAMPLES OF ANALYSIS CONTAINED IN THIS ARTICLE ARE ONLY EXAMPLES. THE VIEWS AND OPINIONS EXPRESSED ARE THOSE OF THE CONTRIBUTORS AND DO NOT NECESSARILY REFLECT THE OFFICIAL POLICY OR POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC. JOSH BROWN IS THE CEO OF RITHOLTZ WEALTH MANAGEMENT AND MAY MAINTAIN A SECURITY POSITION IN THE SECURITIES DISCUSSED. ASSUMPTIONS MADE WITHIN THE ANALYSIS ARE NOT REFLECTIVE OF THE POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC" TO THE END OF OR OUR DISCLOSURE. Click here for the full disclaimer.
Business Wire
4 days ago
- Business
- Business Wire
AM Best Revises Issuer Credit Rating Outlooks to Stable for California Casualty Group Members
OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlooks to stable from negative for the Long-Term Issuer Credit Ratings (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B (Fair) and the Long-Term ICRs of 'bb+' (Fair) of The California Casualty Indemnity Exchange (San Mateo, CA) and its wholly owned subsidiaries: California Casualty General Insurance Company of Oregon (Portland, OR), California Casualty & Fire Insurance Company (San Mateo, CA) and California Casualty Insurance Company (Portland, OR). All of these companies comprise the California Casualty Group (California Casualty). The outlook of the FSR is stable. The Credit Ratings (ratings) reflect California Casualty'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 revision of the Long-Term ICRs outlooks to stable from negative and the affirmation of the ratings reflects the group's improved operating performance, which has exceeded management's expectations. AM Best expects California Casualty to maintain adequate balance sheet strength, supported by a very strong level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR). The improvement in BCAR reflects a strengthened surplus position, reduced catastrophe exposure and improved underwriting margins. The improvement in California Casualty's surplus was driven by better rate adequacy, expense reduction initiatives and improved loss experience. The strategic business initiatives of California Casualty, including realignment of its business mix toward stronger-performing affinity groups and exit from underperforming regions, have contributed to the organization's improved earnings stability and a more sustainable loss ratio. While these actions and enhancements to the ERM are expected to support operating performance and organic surplus growth, California Casualty remains exposed to elevated execution risk. Positive rating actions could occur if the transformation of the group's ERM practices lead to sustained improvements in overall balance sheet strength and profitability. 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.
USA Today
4 days ago
- Sport
- USA Today
Newest golf course in Washington offers fascinating and scenic take on playability
What does playability mean for golf architects? For David McLay Kidd, the concept largely focuses on having room to miss a shot, then possibly recover, or at the very least keep swinging. What it does not mean is that a course is too easy for good players to make too many birdies. The theory will be on full display starting August 1 when the new Scarecrow course opens at Gamble Sands in Brewster, Washington. The first course at the resort – the eponymous Gamble Sands 18-hole layout that opened in 2014 with long views of the Columbia River – helped redefine playability in modern architecture and marked Kidd's new focus on playability for all levels of golfers. That course is ranked by Golfweek's Best as the No. 2 layout in the state of Washington and No. 24 among all public-access courses in the U.S., and it ties for No. 53 among all modern courses in the U.S. Scarecrow, with the Scottish Kidd overseeing development but designed largely by Kidd's longtime partner Nick Schaan, will be a new look at the team's focus on playability. While the original 18 offers extremely wide fairways and plenty of favorable bounces that might kick a ball down and closer to the hole, Scarecrow has a bit more teeth. The greens are set closer to the edges of canyons, and there are a few more pinched points that force players to make decisions. There is still plenty of room to miss, but not always on all sides of the fairways and greens, as seen at the original course. In short, Scarecrow offers a new take by Kidd and Schaan on the boundaries of playability, as defined by Kidd. 'What does playable mean? It means a place to miss,' Kidd told Golfweek while the course was still growing in. 'It means the ability to have some chance of recovery. It means a wide-enough fairway that you can get the ball in play, even if it's not on the aggressive scoring line. I can give it plenty of additional width for misses around the green so that you can make bogey with relative ease. But you can't make birdie with impunity. It takes real effort to make a birdie.' It all should make for a fascinating opportunity to compare and contrast two takes on playability. Which will be the favorite layout on property? Only time will tell, and the best guess is that there will be plenty of discussions about which course is best. That's a great thing for Kidd, Schaan, the resort operators and the players eager to see the new Scarecrow.
Business Wire
5 days ago
- Business
- Business Wire
AM Best Upgrades Credit Ratings of Lincoln Heritage Life Insurance Company
OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to 'a' (Excellent) from 'a-' (Excellent) of Lincoln Heritage Life Insurance Company (Lincoln Heritage) (Springfield, IL). The outlook of these Credit Ratings (ratings) has been revised to stable from positive. The ratings reflect Lincoln Heritage'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. The upgrading of the ratings for Lincoln Heritage reflects a trend of strong and consistent operating performance, with three consecutive years of record operating, underwriting, and investment earnings. The company's strong operating performance is further evidenced in the return on equity ratios, which exceed 20% on a one-, three- and five-year basis. This trend of improved operating performance began in 2022, when the company reported strong underwriting gains mainly driven by a significant decline in death claims. This trend of underwriting income continued through 2024, and continues through first-quarter 2025, as claims trends have moderated over time post the COVID-19 pandemic. Investment income has also increased significantly in recent years, largely driven by growth in invested assets and an improvement in investment yield from the investment portfolio. Lincoln Heritage's strong operating results have been accretive to the balance sheet, with risk-adjusted capital and liquidity metrics improving as its capital has accumulated over the long term. 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
