AM Best Removes from Under Review With Developing Implications and Affirms Credit Ratings of Capital Insurance Group Members
2019 AUG 14 (NewsRx) -- By a
The ratings reflect Capital’s balance sheet strength, which AM Best categorizes as very strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management.
The rating affirmations consider explicit and implicit support from Capital’s new parent,
While significant variability was shown in operating results in the past two years, as catastrophic wildfire losses impacted the group particularly in areas of concentration, management is working to mitigate this exposure over the near term through underwriting initiatives and updates to catastrophe risk modeling. Capital’s business is significantly concentrated geographically, with about 83% of direct premiums written in
Positive rating actions could occur over the near term if integration benefits from the Auto-Owners acquisition are realized and demonstrated in the group’s operating results. However, negative rating actions could occur if the group’s operating results do not improve over time as expected, the group incurs a material loss in capitalization or if the group’s relationship to its parent were to change in a manner that affects the operational stance of the group. 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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases. AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information. Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on businesswire.com: https://www.businesswire.com/news/home/20190801005918/en/
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