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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 06, 2019 09:53 AM (EDT)
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” of Virginia Surety Company, Inc. (VSCI) (Chicago, IL). The outlook of these Credit Rating (ratings) remains stable.
The ratings reflect VSCI’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings also reflect VSCI’s strategic importance to Assurant, Inc. (Assurant). From a strategic standpoint, VSCI strengthens Assurant’s position in the vehicle protection business in addition to enhancing its distribution platform. These positive rating factors are offset by the inherent credit risk associated with ceding significant portions of the business to non-rated, unauthorized captive reinsurers. The credit risk is mitigated somewhat by the use of collateral through letters of credit, trust accounts and funds held on recoverable balances.
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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