Press Release - MAY 15, 2019

AM Best Revises Outlooks to Stable for Specialty Risk of America


CONTACTS:
 Edin Imsirovic
Senior Financial Analyst
+1 908 439 2200, ext. 5740
edin.imsirovic@ambest.com

Robert Raber
Associate Director
+1 908 439 2200, ext. 5696
robert.raber@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 - MAY 15, 2019
AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of Specialty Risk of America (SPRISKA) (Springfield, IL).

The Credit Ratings (ratings) reflect SPRISKA’s balance sheet strength, which AM Best categorizes as very strong, as well as its marginal operating performance, limited business profile and marginal enterprise risk management (ERM).

The revised outlooks to stable reflect the improvement in SPRISKA’s operating performance in 2018 and developing ERM capabilities. SPRISKA’s balance sheet strength is supported by the very strong level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). SPRISKA’s operating performance on a five-year average basis is marginal, with key operating metrics that lag its peer averages along with the company’s combined ratio. However, net income has been positive over the past few years, and the company achieved underwriting profitability in 2018 largely driven by improvement in the expense ratio.

SPRISKA’s business profile is limited due to the company’s geographical concentration and limited data analytics capability. In addition, the marginal ERM assessment reflects the emerging nature of the ERM program, which the company formalized in 2018. Negative rating action is possible if there is deterioration in the operating results or capitalization levels fall below AM Best’s expectation for the current rating level.

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 Understanding 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 rating agency and information provider with a unique focus on the insurance industry.


Related Companies

For information about each company, including the Best's Credit Reports, group members (where applicable) and news stories, click on the company name. An additional purchase may be required.

AMB# Company Name
001980 Specialty Risk of America