AM Best Downgrades Credit Ratings of Allegany Insurance Group’s Members
AM Best has downgraded the Financial Strength Rating to A- (Excellent) from A (Excellent) and the Long-Term Issuer Credit Ratings to “a-” (Excellent) from “a” (Excellent) of the members of
The ratings reflect Allegany’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The downgrading of the ratings reflects a revision in the group’s operating performance assessment to adequate from strong, considering additional volatility in key operating performance metrics over recent years. Allegany has reported higher incurred losses, which have been a product of weather-related events, severe fires, larger liability claims, and inflationary pressures causing loss costs to rise. Although the group recorded a combined ratio below break-even in 2024, it produced its second underwriting loss in the last five-year period, and volatility increased through
The outlooks have been revised to stable from negative in light of the downgrading of the organization’s ratings. The stable outlooks reflect Allegany’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), which is expected to be maintained in support of its overall very strong balance sheet strength assessment. The outlooks also consider the group’s limited business profile, driven by its property concentrated book of business in
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
Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Source: AM Best



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