OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has revised the Long-Term Issuer Credit Rating (Long-Term ICR) outlook to stable from positive and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of “bbb” of MGA Insurance Company, Inc. (MGA) (Dallas, TX). The outlook of the FSR remains stable.

The revision of the Long-Term ICR outlook to stable reflects the decline in risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), at March 31, 2017, and projected to continue through year-end 2017. Policyholders’ surplus declined 4.2% during the first three months of 2017, driven by a $7.7 million stockholder dividend payment, which more than offset positive operating income for the quarter. In addition, risk-adjusted capitalization also was impacted by net written premium growth of 18.8% for the first quarter.

The Credit Ratings (ratings) reflect MGA’s supportive balance sheet strength and favorable operating performance in recent years. Management has implemented corrective actions aimed toward improving profitability through refocused underwriting initiatives in combination with continued rate-strengthening actions and enhancing internal systems to improve operating efficiencies and price-monitoring tools. As a result, underwriting results have improved, and overall operating performance has been favorable in recent years, with pre-tax and total returns on revenue and surplus outperforming the private passenger non-standard auto composite.

Partially offsetting these positive rating factors is the company’s concentration of underwriting risk in non-standard auto lines and historical adverse loss reserve development. In addition, risk-adjusted capitalization has declined in recent years as a result of dividend payments to MGA’s parent holding company offsetting earnings and holding down surplus growth while premium growth has been solid. In addition, while MGA operates in a number of states, a majority of the business is conducted in Florida and Texas. This concentration risk continues to expose the company to regulatory, judicial and economic concerns. However, these concerns are mitigated partially by a strong management team with expertise in the non-standard auto arena, stable reserve development in recent years and significant rate increases in 2016 and 2017 to offset rising loss costs over the near term.

Positive rating action may result if MGA reports favorable operating performance and improving loss reserve development, spurring growth in surplus and risk-adjusted capitalization and moderate underwriting leverage. Negative rating action may result if risk-adjusted capitalization were to fall below A.M. Best’s expectation for the current rating level either due to stockholder dividends, a reduction in profitability or the reemergence of adverse loss reserve development.

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 A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170524005746/en/

A.M. Best

Sharon Pereira Marks, +1 908-439-2200, ext. 5477

Senior Financial Analyst

[email protected]

or

Charles M. Huber, +1 908-439-2200, ext. 5122

Director

[email protected]

or

Christopher Sharkey, +1 908-439-2200, ext. 5159

Manager, Public Relations

[email protected]

or

Jim Peavy, +1 908-439-2200, ext. 5644

Director, Public Relations

[email protected]

Source: A.M. Best

NEWARK, N.J.--(BUSINESS WIRE)-- Prudential Financial today launched OneLeave, adding new absence and disability capabilities to help address the challenges of workplace leaves and the disruption it can create for both employers and employees.

OneLeave unites Prudential’s leave and disability management capabilities into a single easy-to-navigate experience to simplify the workplace absence experience for employees.

“We took our market-leading absence and disability capabilities and made enhancements to our technology and customer experience, combined with our deep consultative expertise, to launch OneLeave,” said Jess Gillespie, Prudential’s head of Group Insurance Product & Underwriting. “We’re excited Prudential Group Insurance will continue as an industry leader in creating healthy and proactive pathways back to work that benefit employees and employers.”

OneLeave helps simplify the claims experience, with an event-based intake, a single claim number, and one point of contact for all leave types, including supplemental health benefits. Employees also have access to real-time information about their leaves online, over the phone, or by texting directly with their claims point of contact. To provide support for a smooth transition back to work, employees receive proactive support from expert resources including vocational rehab specialists, return-to-work experts, physicians, nurses, and more.

To help employees better plan for their absence, OneLeave also features a new leave planning tool called OneLeave Explorer™, powered by Penguin Benefits, a leading provider of technology that aims to demystify leave benefits. OneLeave Explorer helps employees quickly and effectively estimate leave and benefit entitlements, plus build personalized leave plans across short-term disability, company-sponsored leave options, and federal and state leave programs.

Employers have access to an expanded suite of technology, consultative services and new employer capabilities through OneLeave. Employers get insights, analytics and support to minimize extended absences, as well as dedicated local teams to provide recommendations to develop programs that work for their organizations. This includes expert resources to navigate the increasingly complex state paid-leave landscape, ensuring effective and integrated solutions that work for their organizations.

“With OneLeave, we’ve aligned the best of all our resources so we can elevate empathy, consultation and the human side of insurance,” Gillespie said.

For more information on OneLeave, visit Group Insurance Disability Insurance.