trending Market Intelligence /marketintelligence/en/news-insights/trending/4ib6o6yrdgpmylda9-l82q2 content esgSubNav
In This List

Insurance ratings actions: A.M. Best downgrades American Resources Insurance

Blog

Insight Weekly: Fed's policy stance; overdrafts under scrutiny; energy stocks rally

Blog

Financial Institutions Factor Transition Risk into Climate-Related Stress Testing

Blog

Q&A: Data That Delivers - Automating the Credit Risk Workflow

Blog

Investment Research Brokers Ramp up Cryptocurrency Coverage


Insurance ratings actions: A.M. Best downgrades American Resources Insurance

S&P Global Market Intelligence compiles ratings actions in the insurance space daily through 5:30 p.m. ET. Actions after 5:30 p.m. ET will be included in the following day's roundup.

Life and health

A.M. Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of "a+" of Lumico Life Insurance Co.

The outlook is stable.

The ratings primarily reflect A.M. Best's expectation that Swiss Re Ltd., the parent company, will provide explicit support to Lumico Life as needed. The ratings also reflect Lumico Life's very strong balance sheet strength, and its marginal operating performance, limited business profile and very strong enterprise risk management, as a member of the Swiss Re group, A.M. Best said.

__________________________

Fitch Ratings has affirmed the AA+ (Very Strong) insurer financial strength ratings of the Guardian Life Insurance Co. of America and its subsidiaries, Guardian Insurance & Annuity Co. Inc. and Berkshire Life Insurance Co. of America.

The ratings outlook is stable.

Fitch said Guardian Life Insurance's ratings reflect the company's favorable operating profile, extremely solid risk-based capitalization, low operating leverage, high-quality investments and very strong operating results.

Multiline

A.M. Best has revised the outlooks to positive from stable and affirmed the financial strength rating of A- (Excellent) and long-term issuer credit rating of "a-" of Louisiana Farm Bureau Mutual Insurance Co.

The ratings reflect Louisiana Farm Bureau's very strong balance sheet strength, its adequate operating performance, limited business profile and appropriate enterprise risk management.

Property and casualty

A.M. Best has removed from under review with negative implications and downgraded the long-term issuer credit ratings to "a" from "a+" and affirmed the financial strength ratings of A (Excellent) of Germantown Insurance Co., Philadelphia Contributionship Insurance Co. and Philadelphia Contributionship for the Insurance of Houses from Loss by Fire Inc.

The outlook assigned to these ratings is stable, reflecting the companies' improving trend of underwriting profitability.

The ratings reflect the strong balance sheet of the group, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management, A.M. Best said.

The agency added that the companies' balance sheet strength reflects the strongest level of risk-adjusted capitalization, a comprehensive reinsurance program and historically favorable reserve development.

__________________________

A.M. Best has downgraded the financial strength rating to D (Poor) from B- (Fair) and the long-term issuer credit rating to "c" from "bb-" of American Resources Insurance Co. Inc.

The outlook remains negative, which reflects the downward earnings trend and the rating agency's anticipation that the balance sheet may continue to weaken before corrective actions take effect.

A.M. Best said the ratings actions are a result of continued weakening of the balance sheet of the company due to a significant reduction in policyholders' surplus from higher than expected underwriting losses in the latter half of 2017.

A.M. Best categorizes the company's balance sheet strength as very weak, its operating performance as marginal, its business profile as limited and enterprise risk management as marginal.

__________________________

A.M. Best has assigned a financial strength rating of A+ (Superior) and a long-term issuer credit rating of "aa-" to JM Specialty Insurance Co.

The outlook is stable.

These ratings recognize the implementation of a 100% quota share reinsurance agreement between JM Specialty Insurance and its lead company, Jewelers Mutual Insurance Co.

JM Specialty Insurance is a wholly owned subsidiary of JM Holdings Inc., which is wholly owned by Jewelers Mutual Insurance.

The ratings reflect the strongest balance sheet strength of these companies, their strong operating performance, favorable business profile and appropriate enterprise risk management, the rating agency said.

__________________________

A.M. Best has affirmed the financial strength rating of A+ (Superior) and the long-term issuer credit ratings of "aa-" of the members of Intact Insurance Group.

The member companies include Belair Insurance Co. Inc., Intact Insurance Co., Novex Insurance Co., Nordic Insurance Co. of Canada, Trafalgar Insurance Company Of Canada and Jevco Insurance Co., as well as a separately rated member, Intact Farm Insurance Inc.

The rating agency also affirmed the financial strength ratings of A (Excellent) and the long-term issuer credit ratings of "a+" of OneBeacon Insurance Group, whose members include Atlantic Specialty Insurance Co., Homeland Insurance Co. of New York, Homeland Insurance Co. of Delaware, OBI National Insurance Co., OBI America Insurance Co. and Split Rock Insurance Ltd.

A.M. Best also has affirmed the long-term issuer credit ratings of "bbb+" and the long-term issuer credit ratings of OneBeacon Insurance Group Ltd. and OneBeacon U.S. Holdings Inc.

Lastly, the rating agency has affirmed the long-term issuer credit rating of "a-" and the long-term issuer credit ratings of the ultimate parent company, Intact Financial Corp.

The outlook of all these ratings is stable.

A.M. Best said the ratings of members of Intact Group reflect their very strong balance sheet strength, as well as their strong operating performance, favorable business profile and appropriate enterprise risk management.

The ratings of Intact Farm Insurance reflect its strongest balance sheet strength, its strong operating performance, neutral business profile and appropriate enterprise risk management, the agency added.

Meanwhile, the ratings of OneBeacon Insurance Group reflect its members' balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management, the rating agency said.