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.

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A.M. Best

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

Senior Financial Analyst

sharon.marks@ambest.com

or

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

Director

charles.huber@ambest.com

or

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

Manager, Public Relations

christopher.sharkey@ambest.com

or

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

Director, Public Relations

james.peavy@ambest.com

Source: A.M. Best

More than 750 executives, regulators and industry leaders from 15 countries attended the 2026 Bermuda International Life & Annuity Conference, hosted by the Bermuda International Long Term Insurers and Reinsurers (BILTIR).

The conference took place Sept. 28-29 in Bermuda. About half of attendees traveled from outside the country, according to BILTIR.

Sessions covered investment strategies, private credit, artificial intelligence, regulatory oversight and the relationship between the U.S. and Bermuda insurance markets.

The conference also introduced technical sessions on structured assets and AI integration, along with two Deal Rooms for private discussions.

BILTIR Board Chair Natasha Scotland Courcy, CEO and general counsel at Athene Life Re, spoke about the need for long-term financial security as populations age.

Regulators discuss investment and oversight

Craig Swan, CEO of the Bermuda Monetary Authority, joined BILTIR CEO Suzanne Williams for a discussion on Bermuda’s regulatory credibility and competitiveness.

National Association of Insurance Commissioners President Scott White also addressed how changes in investment strategies and technology are affecting insurance supervision.

Other sessions examined risk transformation, structured assets, private credit and the use of artificial intelligence in insurance. Discussions also covered geopolitical and demographic trends affecting retirement and capital flows, Bermuda’s connections with Asian markets, and factors that influence where reinsurance companies conduct business.

The conference’s keynote speaker was General David H. Petraeus, a partner at KKR and former director of the Central Intelligence Agency. Petraeus discussed global power dynamics and how new ideas can contribute to business growth.

The agenda also included discussions about the U.S.-Bermuda insurance value chain and the role Bermuda plays in the international life and annuity market.

BILTIR announces 2027 conference dates

BILTIR announced that its 2027 Bermuda International Life & Annuity Conference will expand to three days, running Sept. 20-22, 2027.

BILTIR represents Bermuda’s long-term insurance and reinsurance industry. Its membership includes 80 annuity, life insurance, reinsurance businesses and servicing companies, according to the organization.

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