AM Best Upgrades Credit Ratings from members of Concord Group Insurance Companies and Capital Insurance Group; Confirms credit ratings of car owners insurance company and certain subsidiaries


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OLDWICK, NJ–()–AM Best upgraded the Financial Strength Rating (FSR) to A+ (Superior) from A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “aa-” from “a+” for members of Concord Group Insurance Companies (Concord Group), which is led by Concord General Mutual Insurance Company (Concord General) (Concord, NH). The outlook for these Credit Ratings has been revised from positive to stable.

At the same time, AM Best upgraded the FSR to A (Excellent) from A- (Excellent) and the Long-Term ICR to “a” from “a-” of California Capital Insurance Company (Monterey, CA) and its subsidiaries, which operate under an intercompany pooling agreement, collectively referred to as Capital Insurance Group (Capital). The outlook for these ratings is stable.


In addition, AM Best revised its outlook from stable to positive and confirmed the FSR of A (Excellent) and the long-term ICR of “a+” from Atlantic Casualty Insurance Company. (Atlantic Accident) (Goldsboro, NC).

AM Best also has the FSR of A++ (Superior) and the long-term ICRs of “aa+” of Auto-Owners Insurance Company (Auto-Owners) (Lansing, MI) and its four property/accident (P/C) companies that Auto-Owners Insurance Group (AOIG). At the same time, AM Best confirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” from Auto-Owners Specialty Insurance Company (AOSIC) (Dover, DE). In addition, AM Best has the FSR of A+ (Superior) and the long-term ICR of “aa-” of Auto-Owners Life Insurance Company (AOLIC) (Lansing, MI), also a wholly owned subsidiary of Auto-Owners. The outlook for these ratings is stable. (See below for a detailed list of the companies).

Concord Group’s ratings reflect the strength of its balance sheet, which AM Best rates as the strongest, as well as its adequate operational performance, neutral business profile and appropriate enterprise risk management (ERM).

The rating actions reflect Concord Group’s strategic position within the Auto-Owners organization, as well as the significant operational and financial benefits Concord Group has realized as a result of its partnership in April 2017 with Auto-Owners, a highly regarded, super-regional insurer. with a surplus of more than $13 billion in policyholders.

The ratings reflect the strength of Capital’s balance sheet, which AM Best categorizes as very strong, as well as its marginal operating performance, neutral business profile and appropriate ERM.

The rating actions reflect the substantial explicit and implicit support Capital has received from Auto-Owners since December 2018, which followed severe net losses and surplus erosion, in part due to the California wildfires in 2017 and 2018, as well as unfavorable reserves development in previous years. accidents year in 2017.

Atlantic Casualty’s ratings reflect the strength of its balance sheet, which AM Best ranks as the strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM.

Since the acquisition, Auto-Owners has increasingly supported Atlantic Casualty in a variety of roles including, but not limited to: actuarial services, product development, reinsurance, claims, marketing and information technology. The ratings also reflect Atlantic Casualty’s improved operational performance in recent years.

AOIG’s ratings reflect the strength of its balance sheet, which AM Best rates as the strongest, as well as its very strong operating performance, favorable business profile and appropriate ERM.

AOIG has generally shown improved business performance in recent years. AOIG also maintains a business profile that is well balanced between personal and commercial lines and P/C matters. Through the acquisition of Atlantic Casualty and AOSIC in 2016, the partnership with Concord General in 2017 and the acquisition of Capital in 2019, AOIG has further broadened its company profile from a product and geographic perspective. These positive rating factors are partially offset by exposure to credit risks associated with the Michigan Catastrophic Claims Association.

AOSIC’s ratings reflect the strength of its balance sheet, which AM Best categorizes as very strong, as well as its adequate operating performance, very limited business profile and appropriate ERM.

AOSIC is a shell company that plans to provide redundant and redundant line coverage to small and medium sized commercial businesses in North Carolina. Risk-adjusted capitalization supports the business plan, which includes moderate premium growth forecasts. In addition, the company is led by a management team with a track record in generating profitable business results at sister company Atlantic Casualty, and with extensive knowledge of the redundant lines and commercial P/C activities. These positive rating factors are partially offset by the expected concentration of unauthorized activities in one state.

AOLIC’s ratings reflect the strength of its balance sheet, which AM Best categorizes as very strong, as well as its strong operating performance, neutral business profile and appropriate ERM.

The ratings take into account AOLIC’s integral role and positive contribution to its P/C parent organization, diversified product portfolio, its favorable level of risk-adjusted capitalization and high-quality investment portfolio.

The FSR has been upgraded to A+ (Superior) from A (Excellent) and the long-term ICRs to “aa-” from “a+” with the outlook revised from positive to stable for the following members of Concord Group Insurance Companies:

  • Concord General Mutual Insurance Company

  • Green Mountain Insurance Company, Inc.

  • State Mutual Insurance Company

  • Sunapee Mutual Fire Insurance Company

  • Vermont Accident Insurance Company, Inc.

The FSR has been upgraded to A (excellent) from A- (excellent) and the long-term ICRs to “a” from “a-“, each with stable outlook, for the following members of Capital Insurance Group:

  • California Capital Insurance Company

  • Eagle West Insurance Company

  • Monterey Insurance Company

  • Nevada Capital Insurance Company

The FSR of A++ (Superior) and the long-term ICRs of “aa+” have been confirmed, each with stable outlook, for Auto-Owners Insurance Company and its wholly owned P/C subsidiaries:

  • Homeowners Insurance Company

  • Owners Insurance Company

  • Insurance company for property owners

  • Southern Owners Insurance Company

This press release relates to Credit Ratings published on AM Best’s website. For all rating information related to the release and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, see AM Best’s Recent Review Activity webpage. For more information on the uses and limitations of credit rating advice, see Best . Credit Rating Guide. For information on proper media use of Best’s Credit Ratings and AM Best press releases, see: Guide to Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

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