AM Best Revises Issuer Credit Ratings Outlook to Stable for Members of CSAA Insurance Group

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has revised the outlook to stable from negative for the Long-Term Issuer Credit Ratings (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) of CSAA Insurance Exchange (Walnut Creek, CA) and its pooled subsidiaries and reinsured affiliates. The outlook of the FSR is stable. In addition, AM Best has revised the outlook to stable from negative and affirmed the Long-Term Issue Credit Rating of “a-” (Excellent) on the $500 million 8.125% surplus notes due 2045, issued by CSAA Insurance Exchange. All companies are collectively referred to as CSAA. (See below for a detailed listing of the companies and ratings.)

The Credit Ratings (ratings) reflect CSAA’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management.

The revision of CSAA’s Long-Term ICRs outlooks to stable from negative is driven by improvement and stability in its balance sheet metrics, since 2023. In 2024, CSAA grew surplus via operating earnings, and in February 2025, issued the $500 million surplus notes, all of which served to strengthen risk-adjusted capitalization and balance sheet measures. This follows a reduction in the capital level in 2023, driven by much higher than anticipated claims costs, as well as material reserve strengthening.

In recent years, operating results have been variable with significant deterioration in underwriting performance in 2023, while posting breakeven results in the adjacent years prior and into 2024. The results in 2023, were negatively impacted due to increased frequency and severity in auto and weather events, as well as inflationary cost pressures for auto claims. However, CSAA has noted improved performance since, due to sizeable rate increases combined with new initiatives focused on risks selection, CAT exposure management and underwriting profitability. Business retention continues to be strong and there has been material new premium growth in the commercial auto segment.

The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed, with the outlooks of the Long-Term ICRs revised to stable from negative, while the outlook of the FSR is stable for the following members of CSAA:

CSAA Insurance Exchange
CSAA Affinity Insurance Company
CSAA General Insurance Company
CSAA Fire & Casualty Insurance Company
Fortential Insurance Company
Mobilitas General Insurance Company
Mobilitas Insurance Company
Mobilitas Insurance Company of Arizona

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.