A.M. Best Places Ratings of Americas Insurance Company Under Review With Negative Implications

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has placed under review with negative implications the financial strength rating of B (Fair) and issuer credit rating of “bb” of Americas Insurance Company (Americas) (New Orleans, LA).

The rating actions stem from Americas’ surplus decline, driven by start-up expenses and changes in non-admitted assets, which were not in-line with the business plan previously submitted.

The ratings will remain under review until A.M. Best completes a full evaluation of Americas’ revised business plan and capital management strategies.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; “A.M. Best’s Perspective on Operating Leverage”; “A.M. Best’s Ratings & the Treatment of Debt”; “Catastrophe Analysis in A.M. Best Ratings”; “Catastrophe Risk Management Incorporated Within the Rating Analysis”; “Natural Catastrophe Stress Test Methodology”; and “Rating New Company Formations.” Methodologies can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

A.M. Best Company
Frederick DeLeon, 908-439-2200, ext. 5715
Senior Financial Analyst
frederick.deleon@ambest.com
or
Gary Davis, 908-439-2200, ext. 5665
Assistant Vice President
gary.davis@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

Source: A.M. Best Company