The Credit Ratings (ratings) reflect AIC’s strong risk-adjusted capitalization, sustained underwriting and operating profitability, solid liquidity, and management’s adherence to conservative reserving and investing practices. The ratings also take into consideration the distinct benefits derived from being affiliated with a critical component of its distribution network. These positive factors are partially offset by its limited business profile and dependence on an affiliated wholesaler as its single-largest production source. The rating and revised outlooks are based on the expectations that AIC will be able to sustain its historical level of performance, based on a sound business plan that includes the benefits of being affiliated with
These ratings apply to
AIC continues to maintain a strong level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). This excellent level of capitalization is augmented by growth in retained earnings, as well as AIC’s adherence to a high quality investment portfolio. Being part of
Positive rating action may result from a continuation of better than average operating results and advancement of risk-adjusted capital through retained earnings.
Downward ratings pressure, while unlikely, could result from a material decline in risk-adjusted capital or a weakening in operating performance that falls markedly short of its peers and expectations. Additional negative rating pressure could result from a sudden, unforeseen shift in AIC’s present business strategy or distribution model.
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.
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