JUNE 23, 2020 08:48 AM (EDT)

AM Best Upgrades Issuer Credit Rating of Nations Insurance Company


CONTACTS:
 Kenneth Tappen
Senior Financial Analyst
+1 908 439 2200, ext. 5248
kenneth.tappen@ambest.com

Brian O’Larte
Director
+1 908 439 2200, ext. 5138
brian.o’larte@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - JUNE 23, 2020 08:48 AM (EDT)
AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bb+” from “bb” and affirmed the Financial Strength Rating (FSR) of B (Fair) of Nations Insurance Company (Nations) (Cerritos, CA). The outlook of the Long-Term ICR has been revised to stable from positive, while the outlook of the FSR remains stable.

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 upgrade of the Long-Term ICR is based on Nations’ increased balance sheet strength in recent years, driven by improved risk-adjusted capitalization, underwriting leverage, liquidity measures and loss reserve development trends. 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 improved its underwriting performance, and increased investment allocation to long-term bonds, which has improved its investment income, both leading to improved surplus growth.

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.


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AMB# Company Name
013874 Nations Insurance Company