AM Best Upgrades Issuer Credit Rating of Quasar Insurance Company, Inc.

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” (Good) from “bbb” (Good) and affirmed the Financial Strength Rating of B++ (Good) of Quasar Insurance Company, Inc. (Quasar) (Mount Pleasant, SC). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Quasar’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 upgrade of the Long-Term ICR reflects Quasar’s improved balance sheet strength fundamentals, driven by organic surplus growth and supportive risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). Supplemental insurance purchased at the affiliated insured is expected to partially mitigate high limits relative to the company’s surplus level. Further, Quasar continues to maintain high quality capital and assets, along with low leverage metrics, and appropriate liquidity.

AM Best assesses Quasar’s operating performance as adequate, driven by solid underwriting and operating metrics in each of the past five years. Earnings capacity continues to be driven by the needs of the affiliated entity, DSLD Homes (DSLD). AM Best assesses Quasar’s business profile as limited mainly due to the concentration of risk exposures in Louisiana and neighboring states along with the vast majority of premium generated by general liability policies. The company’s ERM practices are appropriate as management is keenly aware of the risk tolerance and appetite in place of affiliated risk.

The stable outlooks reflect AM Best’s expectation that Quasar will maintain its very strong balance sheet strength assessment supported by the company’s strongest level of risk-adjusted capitalization, as measured by BCAR, in support of the company’s business plan. In addition, AM Best expects that the company’s operating performance will be sustainable with modest volatility, remaining in line with projections as it executes its strategic role as an integral piece of DSLD’s ERM.

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.