The ratings upgrade of Keystone National reflects the company’s excellent risk-adjusted capitalization that has been attained through several years of improved operating results. The results and ratings are also highly reflective of the integration of the company into Tuscarora Wayne’s operations, which remain under the direction of the same management team. The strong underwriting performance has been evident by above-average five-year combined ratios that outperform the commercial property composite. In addition, the ratings recognize management’s extensive knowledge of its market niche. There are significant benefits derived from its majority owner, Tuscarora Wayne, which bring economies of scale and explicit and implicit support, which includes capital contributions and internal quota-share reinsurance. The ratings further reflect the company’s business plan that is based on the alignment of strategies and underwriting knowledge of Tuscarora Wayne.
Partially offsetting these positive rating factors is the company’s geographic risk concentration in
Negative rating action could potentially occur in future rating cycles if frequent and severe weather events impact the company's profitability, the relationship with Tuscarora Wayne changes or if other market disruptions cause underwriting losses with substantial negative impact on risk adjusted capitalization.
This press release relates to rating(s) 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.
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