SEPTEMBER 01, 2021 03:55 PM (EDT)
AM Best Upgrades Credit Ratings of Agency Insurance Company of Maryland, Inc.
|Josie Novak |
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Manager, Public Relations
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FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 01, 2021 03:55 PM (EDT)
AM Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to “a-” (Excellent) from “bbb+” (Good) of Agency Insurance Company of Maryland, Inc. (AIC) (Hanover, MD). The outlook of the Credit Ratings (ratings) has been revised to stable from positive.
The ratings reflect AIC’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
The ratings upgrade is the result of favorable trends in AIC’s balance sheet strength. This is due to continued improvement in the company’s policyholder surplus level and its risk-adjusted capitalization. AIC’s overall risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is assessed at the strongest level. Balance sheet strength is also supported by favorable reserve development and sound liquidity measures. AIC’s strong operating performance has aided in the company’s surplus growth. Additionally, premium growth has slowed in recent years, and surplus appreciation has outpaced surplus growth in the past three years. This has assisted the net and gross leverage ratios to decline over the latest five-year period to a more favorable position relative to AM Best’s non-standard auto composite.
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 use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.