A.M. Best Removes From Under Review with Negative Implications and Affirms Credit Ratings of Conifer Holdings, Inc. and Its Subsidiaries
The ratings reflect the companies’ balance sheet strength (which
Conifer’s negative outlooks reflect the recent history of unfavorable operating results due primarily to reserve strengthening and adverse reserve development primarily related to its commercial auto liability business and the possibility that underwriting results, excluding development covered under the adverse development cover (ADC), may be less profitable than projected and weaker than that of similarly rated peers. White Pine’s stable outlooks reflect its recent and short history of favorable operating results under current CHI management, offset by the execution risk of rapid growth and the re-mixing of its book of business.
Each company’s ability to generate profits to help support organic capital growth is a very important issue that
These rating actions follow successful execution of strategic initiatives and corrective actions undertaken by the company since
These actions appear to bolster capital and reserves of the operating companies as they counter the continued adverse loss reserve development reported by Conifer through 2017, as well as the prevailing challenges associated with this continued adverse development and the earnings and capital strain placed on CHI and its subsidiaries as a result.
Management is focused on exiting White Pine’s
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. For information on the proper media use of Best’s Credit Ratings and
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