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Insurance ratings actions: A.M. Best acts on Argo Re, subsidiaries

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Insurance ratings actions: A.M. Best acts on Argo Re, subsidiaries

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

U.S. and Canada

A.M. Best affirmed the A financial strength ratings and "a" long-term issuer credit ratings of Argo Re Ltd. and its subsidiaries, ArgoGlobal SE, Argonaut Great Central Insurance Co., Argonaut Insurance Co., Argonaut Ltd. Risk Insurance Co., Argonaut-Midwest Insurance Co., Argonaut-Southwest Insurance Co., ARIS Title Insurance Corp., Colony Insurance Co., Peleus Insurance Co., Colony Specialty Insurance Co., Rockwood Casualty Insurance Co., Select Markets Insurance Co. and Somerset Casualty Insurance Co.

The rating agency also affirmed the "bbb" long-term issuer credit ratings of the parent holding company, Argo Group International Holdings Ltd., and Argo Group U.S. Inc. The outlook is stable.

The ratings reflect the group's balance sheet strength, which A.M. Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

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A.M. Best affirmed the A+ financial strength rating and "aa-" long-term issuer credit rating of Tokio Marine Pacific Insurance Ltd. The outlooks were revised to negative from stable.

The ratings reflect the company's balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

The negative outlooks reflect the deteriorating trend in the company's performance, the expected reduction in its market share and increase in operating performance volatility after the Guam government decided not to renew its health plan account, according to the rating agency.

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A.M. Best placed under review with positive implication the B++ financial strength rating and "bbb+" long-term issuer credit rating of Members Insurance Co. The rating agency also placed under review with positive implications the B++ financial strength rating and "bbb" long-term issuer credit rating of Universal Insurance Co. (NC).

The ratings follow Carolina Motor Club Inc.'s announcement that it had agreed to merge with Auto Club Group Insurance Co. The ratings were placed under review with positive implications, reflecting the rating agency's need to further assess the financial and operational impacts of the merger.

Members Insurance and Universal Insurance are wholly owned subsidiaries of Carolina Motor Club.

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A.M. Best downgraded the financial strength ratings to B++ from A- and the long-term issuer credit ratings to "bbb+" from "a-" of Connecticut Medical Insurance Co. and its sponsored risk rentention group company, CMIC Risk Retention Group. The ratings were removed from under review with negative implications.

The ratings reflect the group's balance sheet strength, which A.M. Best categorizes as strongest, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.

The downgrade reflects the rating agency's revision of the group's operating performance from adequate to marginal. The ratings were placed under review due to the management's decision not to pursue certain proposed initiatives aimed at improving operating performance, according to the rating agency.

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A.M. Best assigned the A- financial strength rating and the "a-" long-term issuer credit rating to Regence BlueShield of Idaho Inc. The outlook is stable.

The ratings reflect the company's balance sheet strength, which A.M. Best categorizes as strongest, and its adequate operating performance, limited business profile and appropriate enterprise risk management.

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Demotech assigned the A, Exceptional, financial stability rating to Stillwater Insurance Co., Stillwater Property & Casualty Insurance Co. and Cimarron Insurance Co. Inc.

The rating reflects exceptional financial stability related to maintaining a positive surplus with regard to policyholders, liquidity of invested assets, an acceptable level of financial leverage, reasonable loss and loss adjustment expense reserves and realistic pricing.

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Fitch Ratings affirmed the BBB+ issuer default rating of Mercury General Corp. and the A insurer financial strength rating of its principal operating subsidiary, Mercury Casualty Co.

The affirmation reflects Mercury General's strong capitalization, improving current-accident year underwriting performance, solid competitive position in California and its enhanced catastrophe reinsurance protection.

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Moody's affirmed the B3 corporate family rating of Hub International Ltd., following its announcement that it will issue an incremental $1.27 billion senior secured term loan. The outlook is stable.

The ratings reflect the company's solid market position in North American insurance brokerage, good diversification across products and geographic areas in the U.S. and Canada, and its consistently strong EBITDA margins.

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S&P Global Ratings affirmed the B long-term issuer credit ratings of Acrisure Holdings Inc. and Acrisure LLC.

The outlook is stable, reflecting the rating agency's expectation for robust growth through 2020 driven by the company's mergers and acquisitions, stable EBITDA margins and cash-flow generation.

The ratings reflect the group's fair business risk profile and a highly leveraged financial risk profile.

Europe

S&P Global Ratings assigned its B long-term local currency and foreign currency ratings on French insurance broker Andromeda Investissements, which acquired April SA in June.

The ratings reflect the company's leading market position as a wholesale insurance broker in France for niche segments, including health insurance, credit protection, disability and death protection, and some property and casualty niche products.

Asia-Pacific

Moody's affirmed the A2 insurance financial strength rating of New China Life Insurance Co. Ltd. The outlook was revised to positive from stable.

The positive outlook reflects the company's successful shift to an agency model and its increased focus on long-term protection products. These resulted in increased agency productivity, improved product mix and higher new business margins, which support long-term profitability and capital generation, according to Moody's.

The affirmation reflects the company's established market franchise and diversified product mix.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.

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