Latest news with #FinancialStrengthRating
Business Wire
4 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.
Business Wire
4 days ago
- Business
- Business Wire
AM Best Downgrades Credit Ratings of Nonprofits Insurance Alliance Group's Members
BUSINESS WIRE)-- AM Best has downgraded the Financial Strength Rating (FSR) to A- (Excellent) from A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) to 'a-' (Excellent) from 'a+' (Excellent) of Nonprofits Insurance Alliance of California, Inc. (Santa Cruz, CA), National Alliance of Nonprofits for Insurance, Inc. and Alliance of Nonprofits for Insurance, Risk Retention Group, Inc. (both of West Brookfield, VT) which all are members of Nonprofits Insurance Alliance Group (NIA or the group). The outlook of the FSR has been revised to negative from stable, while the outlook of the Long-Term ICRs is negative. The Credit Ratings (ratings) reflect NIA's balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The downgrading of these ratings reflects a decline in NIA's level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), and the increased unfavorable development of prior-year loss reserves, which led to a material decline in surplus in 2024. The adverse reserve development was experienced across several lines of business including improper sexual misconduct liability, directors' and officers' liability and commercial auto liability, which were compounded by social inflation and higher jury verdicts. In addition, due to changes in the commercial insurance market over the last five years, the group experienced substantial growth in premium, which additionally pressured its underwriting leverage metrics and resulting BCAR score. Over the last few years, NIA's management team has undertaken numerous corrective actions aimed at improving results including the non-renewal of problematic business segments, significant rate increases, revised limits, increased deductibles, as well as changes and additions to staff. Given the extent of these actions, AM Best has altered its assessment of NIA's business profile to neutral as these actions may have the potential for market disruption. Furthermore, AM Best expects that management's initiatives will take time to reverse the negative trends, as well as for metrics to return to historical norms. The negative outlook reflects AM Best's concern over the deterioration in NIA's operating performance in recent years. Prior to 2022, the group's underwriting and operating metrics maintained a high level of consistency; however, there has been deterioration in its metrics in more recent years driven by elevated loss and loss adjustment expenses. Negative rating actions may occur if there is continued deterioration in NIA's operating performance that is no longer in line with adequate performance metrics. Negative rating actions may also occur if there is continued significant adverse loss reserve development, which negatively impacts risk-adjusted capitalization or if the corrective actions taken by management fail to improve and stabilize the group's profitability metrics. While unlikely in the intermediate term, positive rating actions could occur if the group exhibits sustained organic surplus growth that is able to absorb variability in reserve development. 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
4 days ago
- Business
- Yahoo
AM Best Downgrades Credit Ratings of Nonprofits Insurance Alliance Group's Members
OLDWICK, N.J., June 04, 2025--(BUSINESS WIRE)--AM Best has downgraded the Financial Strength Rating (FSR) to A- (Excellent) from A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) to "a-" (Excellent) from "a+" (Excellent) of Nonprofits Insurance Alliance of California, Inc. (Santa Cruz, CA), National Alliance of Nonprofits for Insurance, Inc. and Alliance of Nonprofits for Insurance, Risk Retention Group, Inc. (both of West Brookfield, VT) which all are members of Nonprofits Insurance Alliance Group (NIA or the group). The outlook of the FSR has been revised to negative from stable, while the outlook of the Long-Term ICRs is negative. The Credit Ratings (ratings) reflect NIA's balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The downgrading of these ratings reflects a decline in NIA's level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), and the increased unfavorable development of prior-year loss reserves, which led to a material decline in surplus in 2024. The adverse reserve development was experienced across several lines of business including improper sexual misconduct liability, directors' and officers' liability and commercial auto liability, which were compounded by social inflation and higher jury verdicts. In addition, due to changes in the commercial insurance market over the last five years, the group experienced substantial growth in premium, which additionally pressured its underwriting leverage metrics and resulting BCAR score. Over the last few years, NIA's management team has undertaken numerous corrective actions aimed at improving results including the non-renewal of problematic business segments, significant rate increases, revised limits, increased deductibles, as well as changes and additions to staff. Given the extent of these actions, AM Best has altered its assessment of NIA's business profile to neutral as these actions may have the potential for market disruption. Furthermore, AM Best expects that management's initiatives will take time to reverse the negative trends, as well as for metrics to return to historical norms. The negative outlook reflects AM Best's concern over the deterioration in NIA's operating performance in recent years. Prior to 2022, the group's underwriting and operating metrics maintained a high level of consistency; however, there has been deterioration in its metrics in more recent years driven by elevated loss and loss adjustment expenses. Negative rating actions may occur if there is continued deterioration in NIA's operating performance that is no longer in line with adequate performance metrics. Negative rating actions may also occur if there is continued significant adverse loss reserve development, which negatively impacts risk-adjusted capitalization or if the corrective actions taken by management fail to improve and stabilize the group's profitability metrics. While unlikely in the intermediate term, positive rating actions could occur if the group exhibits sustained organic surplus growth that is able to absorb variability in reserve development. 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 Luke Davies Financial Analyst +1 908 882 2467 Adrienne Stark Associate Director +1 908 882 2336 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
Barnama
29-05-2025
- Business
- Barnama
AM Best Upgrades Credit Ratings of Asian Reinsurance Corporation
SINGAPORE, May 29 (Bernama) -- AM Best has upgraded the Financial Strength Rating to B++ (Good) from B+ (Good) and the Long-Term Issuer Credit Rating to 'bbb' (Good) from 'bbb-' (Good) of Asian Reinsurance Corporation (Asian Re) (Thailand). The outlook of these Credit Ratings (ratings) has been revised to stable from positive. The ratings reflect Asian Re's balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
Business Wire
28-05-2025
- Business
- Business Wire
AM Best Upgrades Credit Ratings of Asian Reinsurance Corporation
SINGAPORE--(BUSINESS WIRE)-- AM Best has upgraded the Financial Strength Rating to B++ (Good) from B+ (Good) and the Long-Term Issuer Credit Rating to 'bbb' (Good) from 'bbb-' (Good) of Asian Reinsurance Corporation (Asian Re) (Thailand). The outlook of these Credit Ratings (ratings) has been revised to stable from positive. The ratings reflect Asian Re's balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). The rating upgrades reflect Asian Re's sustained improvement in operating performance in recent years, evidenced by a return-on-equity ratio of 9.4% in 2024 (2023: 4.6%). The company has achieved positive operating results in four of the last five years. Underwriting performance in 2020 was hampered by a reserve strengthening exercise and higher-than-expected claims experience. However, the combined ratio improved to 85.3% in 2024 (2023: 101.6%) following remediation actions undertaken by the company. The company's investment returns, arising mainly from interest income, have consistently supported operating earnings. Prospectively, AM Best expects Asian Re's operating performance to be supported by sound underwriting profitability and robust investment returns. Asian Re's balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, which was at the strongest level at year-end 2024, as measured by Best's Capital Adequacy Ratio (BCAR), and is expected to remain at that level over the medium term. Notwithstanding, the company is viewed to have a relatively modest absolute capital base of USD 76 million at year-end 2024, as compared with regional reinsurance peers, which increases the sensitivity of its balance sheet to shock events. A significant offsetting balance sheet strength factor remains Asian Re's high-risk investment strategy, which includes the holding of a sizable balance of cash and deposits in a sanctioned country and, to a much lesser extent, in a country that historically defaulted on and subsequently restructured its sovereign debt. Although the company has been actively reducing its holdings of some of these assets in recent years, AM Best's view is this investment strategy exposes Asian Re to heightened credit and liquidity risks. AM Best views Asian Re's business profile as limited, reflecting its position as a regional non-life reinsurer, with a modest-sized gross premium base of USD 26 million in 2024. The company writes treaty and facultative business in Asia, the Middle East and Africa. The company continues to grow its book of business, with a focus on improved diversification by geography and line of business. Despite persistent market and regulatory challenges in some of the markets where it operates, Asian Re is expected to continue to implement several strategic initiatives and business partnerships that are aimed at expanding its underwriting portfolio and market presence over the medium term. AM Best considers Asian Re's ERM approach to be appropriate relative to the current size and complexity of its operations. The company continues to develop its risk management framework and has demonstrated improvements in its risk management capabilities over recent years. Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication. 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.
