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FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 08, 2020 10:24 AM (EDT)
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” of Agency Insurance Company of Maryland, Inc. (AIC) (Hanover, MD).
The Credit Ratings (ratings) reflect AIC’s balance sheet strength, which AM Best categorizes as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).
The revised outlooks reflect the results of favorable trends in AIC’s balance sheet strength. This is due to continued improvements in policyholder surplus levels, leverage ratios and risk-adjusted capitalization. Overall, risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is assessed as strongest. AIC has seen substantial growth in net premiums written (NPW) in prior years, with growth starting to slow down in more recent years. Due to the company’s profitability and strong operating performance metrics, coupled with a slowdown in NPW, AIC has grown surplus at a rate that has outpaced NPW growth in more recent years. This has improved the company’s leverage ratios and risk-adjusted capitalization consistently.
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.