The ratings reflect GUARD’s solid risk-adjusted capitalization, favorable operating profitability achieved through disciplined underwriting initiatives, and conservative reserving philosophy, which has resulted in favorable reserve development in recent years. The ratings also acknowledge the implicit and explicit financial support provided by GUARD’s ultimate parent, Berkshire Hathaway Inc. (Berkshire) [
Partially offsetting these positive rating factors are the group’s above-average growth in its core workers’ compensation line and other commercial classes over the past several years. While GUARD has been deliberate and measured in its approach to the market, there is greater inherent risk associated with integrating new product lines and expansion into new states. In addition, there is a degree of risk as it regards the concentration in several states and production sources. Despite these concerns, the outlooks reflect GUARD’s enhanced financial flexibility provided by Berkshire, solid balance sheet and historical underwriting profitability.
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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