Press Release - JUNE 11, 2019
AM Best Revises Issuer Credit Rating Outlook to Positive for Nations Insurance Company
FOR IMMEDIATE RELEASE
OLDWICK - JUNE 11, 2019
The Credit Ratings (ratings) reflect Nations’ balance sheet strength, which AM Best categorizes as adequate, as well as its adequate operating performance, limited business profile and marginal enterprise risk management.
The revised outlook for the Long-Term ICR to positive from stable is based on the recent improvement of Nations’ operating performance and risk-adjusted capitalization, driven by increased underwriting earnings and investment income, which led to solid surplus growth. In addition, Nations implemented a 50% quota share reinsurance contract effective Jan. 1, 2017, which reduced its net underwriting leverage significantly. This quota share reinsurance was increased to 60% effective Jan. 1, 2018. Furthermore, Nations has implemented rate increases in recent years, which have enhanced its net underwriting income, and increased investment allocation to long-term bonds from short-term investments, which has increased its net investment yield and net investment income.
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.
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