MAY 20, 2020 04:23 PM (EDT)
AM Best Upgrades Credit Ratings for Kentucky Growers Insurance Company
FOR IMMEDIATE RELEASE
OLDWICK - MAY 20, 2020 04:23 PM (EDT)
The ratings reflect KGIC’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 rating actions reflect KGIC’s strengthened risk-adjusted capitalization over the past five years, accompanied by a continuation of favorable trends in key metrics of balance sheet strength such as policyholders’ surplus growth, underwriting leverage and liquidity measures.
The ratings reflect KGIC’s adequate operating performance, driven by metrics of total operating earnings (pre-tax return on revenue; return on surplus; operating ratio), each of which is solidly in line with the personal property industry composite five-year average. The ratings also reflect KGIC’s business profile, which is limited by its geographic concentration in Kentucky, which exposes results to frequent and severe weather-related events, as well as potential judicial, economic, competitive and regulatory challenges. KGIC’s ERM framework is developed, and risk management capabilities are appropriately commensurate with the complexity of the business. Such capabilities include maintaining a comprehensive reinsurance program, which partially mitigates the impact of weather-related catastrophe losses.
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.