AM Best Upgrades Credit Ratings of Members of AmeriTrust Group
OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has upgraded the Financial Strength Rating (FSR) to A-
(Excellent) from B++ (Good) and the Long-Term Issuer Credit Ratings
(Long-Term ICR) to “a-” from “bbb+” of the members of AmeriTrust Group
(AmeriTrust), which operate under an intercompany reinsurance
pooling agreement. The outlook of these Credit Ratings (ratings) has
been revised to stable from positive. (See below for a listing of the
companies.)
The ratings reflect AmeriTrust’s balance sheet strength, which AM Best
categorizes as very strong, as well as its marginal operating
performance, neutral business profile and appropriate enterprise risk
management (ERM).
The rating upgrades reflect the group’s improved ERM capabilities
including improvements in internal controls, risk identification, risk
appetite, stress testing, and governance and risk culture. In addition,
the operating performance improved in 2018 as a result of significant
corrective actions that were implemented over the past few years by the
new management team. AmeriTrust’s risk-adjusted capitalization, as
measured by Best’s Capital Adequacy Ratio (BCAR), is assessed as
strongest, and is offset partially by relatively high terrorism exposure
and historical reserve volatility. While positive rating actions are not
likely over the short to intermediate term, factors that could lead to
an outlook revision or a rating downgrade include unfavorable operating
profitability trends, outsized underwriting or investment losses, and a
decline in risk-adjusted capital that would not be supportive of the
current rating levels.
The FSR has been upgraded to A- (Excellent) from B++ (Good) and the
Long-Term ICRs to “a-” from “bbb+” with the outlooks revised to stable
from positive for the following members of the AmeriTrust Group:
• Star Insurance Company
• Century Surety Company
• ProCentury Insurance Company
• Williamsburg National Insurance Company
• Ameritrust Insurance Corporation
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 Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and AM Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
Contacts
Edin Imsirovic
Senior Financial Analyst
+1
908 439 2200, ext. 5740
edin.imsirovic@ambest.com
Christopher Sharkey
Manager, Public Relations
+1
908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Jacqalene Lentz, CPA
Director
+1 908 439
2200, ext. 5762
jacqalene.lentz@ambest.com
Jim Peavy
Director, Public Relations
+1 908
439 2200, ext. 5644
james.peavy@ambest.com