NOVEMBER 19, 2020 02:15 PM (EST)
AM Best Affirms Credit Ratings of American National Insurance Company and Its Subsidiaries
FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 19, 2020 02:15 PM (EST)
In addition, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICRs of “a+” of American National Property and Casualty Company (Springfield, MO), and its subsidiaries, American National General Insurance Company (Springfield, MO); ANPAC Louisiana Insurance Company (Baton Rouge, LA); American National Lloyds Insurance Company; Pacific Property and Casualty Company (San Jose, CA); and its affiliates, American National County Mutual Insurance Company, Farm Family Casualty Insurance Company and United Farm Family Insurance Company (both domiciled in Glenmont, NY). These entities are all considered part of American National Property & Casualty Group (ANPAC Group) due to their strategic importance. These companies are property/casualty subsidiaries of their ultimate parent, ANICO, which is a subsidiary of American National Group, Inc. [NASDAQ: ANAT].
The outlook of these Credit Ratings (ratings) is stable. All the above companies are headquartered in Galveston, TX, unless otherwise noted.
The ratings of ANG reflect its balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, favorable business profile and appropriate enterprise risk management (ERM). ANG continues to report the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), despite the challenging environment. Additionally, the group’s investment portfolio continues to perform well, though AM Best notes that the company maintains a higher-than-average allocation to commercial mortgage loans. ANG’s delinquencies tied to these loans were minimal through the first three quarters of 2020. The portfolio has produced a steady stream of net investment income that has bolstered operating results. ANG’s diverse product portfolio and distribution has generated profitable operating gains, albeit muted more recently, impacted by new business strain and the low interest rate environment.
The ratings of ANPAC Group reflect its balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM. The group continues to maintain the strongest BCAR, as well as more-than-adequate liquidity and invested assets of good credit quality. ANPAC Group’s consistent operating earnings reflect the effectiveness of management and the group’s adequate reinsurance protection during the significant uptick in catastrophic events in 2020. While the company competes with significantly larger carriers, it has proven its strength in core markets, reporting generally favorable premiums growth year over year. ANPAC Group’s ratings also reflect the support if its ultimate parent, ANICO.
The ratings of GSL reflect its balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, limited business profile and appropriate ERM. The company began marketing Medicare Supplement policies in late 2019, and has reported modest premium growth. GSL is consistently profitable and benefits from the administration and risk management of the organization.
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.