These Credit Ratings (ratings) reflect LML’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The positive outlook for the Long-Term ICR is based on LML’s improved operating performance in recent years, driven primarily by favorable loss experience, which has led to strong surplus growth. The favorable earnings trend is mainly attributed to improved underwriting, stricter underwriting and claims handling and favorable reserve development. In addition, LML’s return on invested assets has been stable and compares favorably with those of the composite averages.
The ratings also recognize LML’s strongest level of risk-adjusted capitalization, strong liquidity, conservative investment portfolio and comprehensive reinsurance program that protects policyholder surplus from volatility in results. In addition, reserves have developed favorably and continued to decline in recent years as a result of the company’s focus on closing claims quickly and lower claim frequency. LML has long-standing expertise in the
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