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FOR IMMEDIATE RELEASE
OLDWICK - FEBRUARY 27, 2020 08:25 AM (EST)
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb+” of Sutter Insurance Company (Sutter) (Petaluma, CA).
The Credit Ratings (ratings) reflect Sutter’s balance sheet strength, which AM Best categorizes as very strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.
The positive outlooks reflect Sutter’s very strong balance sheet and significantly improved underwriting and operating performance in recent years, driven by management’s numerous strategic initiatives. These initiatives include the non-renewal of unprofitable lines of business, rate adjustments across all lines of business, re-underwriting its homeowners’ book of business, an executive review of open claims files, an increase of initial case reserves and an increased focus on risk management and loss control.
Sutter’s balance sheet strength is driven by its risk-adjusted capitalization being at the strongest level, as measured by Best’s Capital Adequacy Ratio, as well as underwriting leverage and liquidity measures that compare favorably with the commercial automobile industry composite average. These positives are partially offset by Sutter’s limited financial flexibility and scale of operations.
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 Guide to 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 credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.