The ratings of
These positive factors are somewhat offset by the payment of significant stockholder dividends to AFG over the recent five-year period, elevated common stock leverage and adverse loss development in certain lines of business. While
Mid-Continent's ratings reflect its solid risk-adjusted capitalization, very strong operating performance achieved over the long term and successful position within its targeted markets. The group's favorable underwriting and operating results reflect management's proven product knowledge, focus on accurate pricing, and commitment to conservative reserving standards. The group also benefits from the financial flexibility provided by its ultimate parent, AFG.
These positive rating factors are partially offset by the significant stockholder dividends paid to AFG, which has reduced policyholder surplus during the recent five-year period, and the group's relatively limited geographic spread of business.
American Empire's ratings acknowledge its risk-adjusted capitalization, strong operating performance over the long term within the excess and surplus lines marketplace, and the successful track record of the executive team in managing operations through all phases of the market cycle. American Empire's strong operating performance reflects the highly profitable underwriting results, a low-cost operating structure and solid investment income despite a reduction in the invested asset base. The group's underwriting results are reflective of management's disciplined underwriting approach, pricing integrity and strong product and market knowledge. The ratings also reflect the benefits of the financial flexibility provided by its ultimate parent, AFG.