Press Release - AUGUST 17, 2017
A.M. Best Upgrades Credit Ratings of Lancer Indemnity Company and Affirms Credit Ratings of Lancer Insurance Company
FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 17, 2017
The rating upgrades of Lancer Indemnity Company recognize the explicit support provided by a 100% quota share reinsurance agreement, including loss reserve development cover, from Lancer Insurance Company effective July 1, 2017. The rating affirmations of Lancer Insurance Company reflect its leading market presence in the specialty transportation market, adequate risk-adjusted capitalization, and adequate returns over the most recent five- and ten-year periods.
The negative rating outlooks are due to volatility in Lancer Insurance Company’s underwriting results over the past five years that was largely from the recognition of net adverse loss reserve development in its commercial auto liability line.
The ratings could be impacted negatively should competitive conditions or significant adverse loss reserve development result in underwriting and overall profitability measures that fall short of A.M. Best’s expectation, or should there be a material decline in the group’s risk-adjusted capitalization.
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