OCTOBER 07, 2019 03:33:27 Eastern Daylight Time
AM Best Revises Outlooks to Positive for Members of Columbia Lloyds Companies
FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 07, 2019 03:33:27 Eastern Daylight Time
The ratings reflect Columbia Lloyd’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The revised outlooks to positive reflect underwriting and operating performance metrics that outperform the composite driven by management’s corrective actions, inclusive of decreasing exposures and enforcing strict underwriting guidelines. These actions combined with a prudent reinsurance program, have led to improved profitability from earlier years. AM Best’s expectation is for the company’s above average operating performance to continue while it maintains very strong balance sheet strength.
Columbia Lloyds’ balance sheet strength reflects the strongest level of risk-adjusted capitalization and historically favorable reserve development, partially offset by above average dependence on reinsurance as measured by ceded leverage. The limited business profile reflects its geographically concentrated position in the Texas personal property market. Columbia Lloyds also benefits from an appropriate ERM program that supports the risk profile of the organization.
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