Collectively, these companies operate under a pooling agreement and are referred to as
At the same time,
The ratings for the members of
The ratings for American Freedom reflect its solid risk-adjusted capitalization, conservative underwriting leverage and favorable loss reserve development. The ratings also contemplate the company's continued operating profitability, which has benefited from favorable loss experience. The profitable performance is reflective of management's prudent underwriting, despite the highly competitive nonstandard automobile market. The ratings also reflect the implicit and explicit support provided by Western National since its purchase of American Freedom in
These strengths are partially offset by American Freedom's limited business profile. Due to its singular product offering and relatively tight geographic concentration, the company remains susceptible to adverse changes in the judicial and legislative environment, as well as increased competition, which had impacted premium growth in recent years.
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