AM Best Revises Outlooks to Stable for Hurst Home Insurance Company, Inc.

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Hurst Home Insurance Company, Inc. (HHIC) (Lexington, KY).

The Credit Ratings (ratings) reflect HHIC’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 revised outlooks to stable from negative reflect improvement in HHIC’s operating performance in 2025, which has continued into 2026. Inflation, rising reinsurance costs as well as weather related losses, significantly impacted HHIC’s operating results between 2022 and 2024. In response, management implemented multiple profitability initiatives such as rate increases and careful re-underwriting of the book of business. These actions paired with a favorable 2025 loss environment, successfully drove strong profitability through 2025 and 2026.

HHIC’s balance sheet strength remains at a very strong level, based on risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), conservative loss reserve leverage measures, low underwriting leverage, prudent investment portfolio, strong liquidity measures and a comprehensive reinsurance program with highly rated partners.

The limited business profile reflects its product and geographic risk concentrations as a writer of personal property insurance in Kentucky. Geographic concentration of risk exposes results to potential judicial, economic and regulatory challenges. Similarly, results are exposed to frequent and severe weather-related events due to the prevalence of property lines coverage in the company's business mix. HHIC’s ERM capabilities align with its modest risk profile.

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.