The revised outlooks reflect Bankers’ numerous underwriting actions and an effective refinement of operations resulting in improved risk-adjusted capitalization and process efficiencies. Though results over the most recent five-year period remain volatile, the operating strategies implemented over several years have begun to be evident. The actions include sophisticated pricing models, expense management initiatives as well as various risk management strategies that address both geographic risk selection and policy terms and conditions. Additionally, surplus has increased at a greater rate than net written premiums, driven more recently by underwriting income, which has supported the company’s capitalization position as measured by Best’s Capital Adequacy Ratio (BCAR).
Partially offsetting these positive factors is a heavy concentration in southeastern coastal states, particularly
Positive rating action may result from sustained improvement in operating performance while continuing to improve the current level of risk-adjusted capitalization.
Downward rating pressure, while unlikely, could occur if operating results deteriorate beyond expectations, causing a decline in capitalization.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
Copyright © 2016 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
+1 908 439 2200, ext. 5043
+1 908 439 2200, ext. 5423
+1 908 439 2200, ext. 5159
+1 908 439 2200, ext. 5644