AM Best Affirms Credit Ratings of The Allstate Corporation and Core Subsidiaries

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “aa-” (Superior) of the members of Allstate Insurance Group (Allstate) [NYSE: ALL]. Concurrently, AM Best has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of ASMI Auto Group’s members. AM Best also has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) of First Colonial Insurance Company (FCIC) (Jacksonville, FL). All of the aforementioned companies are headquartered in Northbrook, IL, except where specified.

Additionally, AM Best has affirmed the Long-Term ICR of “a-” (Excellent) and all existing Long-and Short-Term Issue Credit Ratings (Long-Term IR; Short-Term IR) of the ultimate parent, The Allstate Corporation (Allcorp). At the same time, AM Best has affirmed the Long-Term ICR of “a-” (Excellent) of National General Holdings Corp. (Delaware), an intermediate holding company of Allcorp. In addition, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” (Excellent) of National Health Insurance Company (Dallas, TX). AM Best also affirmed the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) of National General Insurance Ltd. (NGIL) (Bermuda). The outlook of all these Credit Ratings (ratings) is stable.

Concurrently, AM Best has revised the outlooks to stable from negative and affirmed the FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) of the members of Allstate New Jersey Insurance Group (collectively referred to as Allstate New Jersey) (headquartered in Bridgewater, NJ).

Lastly, AM Best has upgraded the Long-Term ICR to “bb+” (Fair) from “bb” (Fair) and affirmed the FSR of B (Fair) of the members of Castle Key Group (Castle Key). The outlook of the FSR has been revised to positive from stable while the outlook of the Long-Term ICR is positive. (See link below for a detailed listing of the companies and ratings.)

The ratings of Allstate reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).

Allstate has a favorable market position in the private passenger auto and homeowners’ markets with its extensive reach and distribution capabilities that historically have contributed to sustained profitability and robust cash flow. However, economic challenges combined with increased pressure from catastrophe events adversely affected Allstate’s underwriting and financial results in 2022 and 2023. In response, Allstate implemented a comprehensive profit improvement plan, which included increasing rates, enhancing underwriting standards and expense reduction. These measures have resulted in materially improved margins through 2025 and through the first six months of 2026.

As a result of stronger earnings, Allstate’s risk-adjusted capitalization benefited from a 26% statutory surplus growth in 2025, the second consecutive year of double-digit growth. Balance sheet strength is further supported by a comprehensive reinsurance program, which has been enhanced in recent years to reduce the overall exposures. As a result, the level of risk-adjusted capitalization, as measured by Best Capital Adequacy Ratio (BCAR), improved materially and was at a very strong level as of year-end 2025. AM Best notes that Allcorp maintains strong financial flexibility through its access to capital markets and various other sources of liquidity. As of June 2026, the organization’s unadjusted and adjusted financial leverage, as calculated by AM Best, was 23.3% and 15.6%, respectively; and as of end of 2025 the interest coverage was over 25 times. Allstate’s leverage and coverage metrics are within AM Best’s expectations and more than adequate for its current ratings.

The ratings of ASMI Auto Group reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, very limited business profile and appropriate ERM. The ratings also reflect the risk management and service agreement support of its ultimate parent, Allcorp.

The ratings of FCIC reflect its balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, neutral business profile and appropriate ERM. FCIC’s ratings also benefit from the explicit and implicit support provided by Allcorp, its ultimate parent.

Additionally, the ratings of National Health Insurance Company reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM. National Health Insurance Company’s ratings also benefit from the explicit and implicit support provided by Allcorp, its ultimate parent.

The ratings of NGIL reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate ERM. NGIL’s ratings also benefit from the explicit and implicit support provided by Allcorp, its ultimate parent.

The ratings of Allstate New Jersey reflect its balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate ERM. Additionally, the ratings recognize the financial strength, ERM and continued support of Allstate Insurance Company and Allcorp. The revision of outlooks to stable from negative reflects material improvement in earnings in the past two years, projected positive results in the near term as well as significant strengthening of risk-adjusted capitalization, as measured by BCAR. That has been achieved through rate increases combined with tighter control over new business generation in areas with higher exposure to weather-related catastrophe events.

The ratings of Castle Key reflect its balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and appropriate ERM. The upgrade of Long-Term ICR reflects significant growth of risk-adjusted capitalization, as measured by BCAR, which improved to strongest level in 2025 compared to adequate and weak levels in prior years. The revision of the FSR outlook to positive from stable reflects improvements in Castle Key’s operating performance metrics, notably its improved underwriting and operating profitability. Earnings at Castle Key are expected to remain positive for the next two years.

A complete listing of The Allstate Corporation and its property/casualty and life/health subsidiaries’ FSRs, Long-Term ICRs and Long- and Short-Term IRs is available.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.