Press Release - MAY 09, 2019

AM Best Upgrades Credit Ratings of Members of AmeriTrust Group


CONTACTS:
 Edin Imsirovic
Senior Financial Analyst
+1 908 439 2200, ext. 5740
edin.imsirovic@ambest.com

Jacqalene Lentz, CPA
Director
+1 908 439 2200, ext. 5762
jacqalene.lentz@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - MAY 09, 2019
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.


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