A.M. Best Revises Outlooks to Stable for Aspire General Insurance Company
The ratings reflect Aspire General’s balance sheet strength, which
The revised outlooks to stable from negative reflect Aspire General’s strong risk-adjusted capitalization, improved operating performance in recent years and senior management’s operating experience and in-depth knowledge of California’s private passenger non-standard automobile market. Additionally, the company is technologically advanced for its size and utilizes predictive analytics in decision making with a heavy emphasis on managing loss frequency. Furthermore, data analytics and point-of-sale tools are used to quickly target profitable segments and swiftly react to new business rate needs. Lastly, ownership has contributed capital to Aspire General in recent years to support new business growth, along with increasing its quota share cession in 2018 for surplus relief.
Partially offsetting these positive ratings factors are Aspire General’s above-average underwriting leverage, below-average liquidity measures and high reinsurance dependence. The company also has execution risk as a start-up, associated with growing its private passenger non-standard automobile book of business, a segment in which smaller insurance writers have experienced a material deterioration in operating results and policyholders’ surplus in recent years. The general deterioration in the non-standard automobile line of business has been partially driven by economic conditions, significant price competition and adverse selection from large personal automobile writers with greater scale and pricing granularity.
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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