OCTOBER 06, 2022 12:28 PM (EDT)
AM Best Upgrades Credit Ratings of ALPS Property & Casualty Insurance Company
|Connor Brach |
Senior Financial Analyst
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Manager, Public Relations
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FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 06, 2022 12:28 PM (EDT)
AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” (Excellent) from “a-” (Excellent) of ALPS Property & Casualty Insurance Company (ALPS) (Missoula, MT). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.
The ratings reflect ALPS’ balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The rating upgrades reflect a revision in ALPS’ business profile assessment to neutral from limited. Although concentrated in providing legal professional liability insurance for smaller-sized law firms, the company’s book of business is well-diversified geographically. In addition, management has devoted significant resources toward developing sophisticated pricing and data analytics capabilities, including its risk management algorithm and straight-through processing applications. These resources enable ALPS to manage and price risks effectively while maintaining a scalable expense structure, contributing toward profitable growth. Through these efforts, the company is leveraging technology to improve overall operating results and the customer experience.
AM Best expects ALPS’ balance sheet strength to remain very strong, supported by the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s adequate operating performance has benefited from management’s strategic initiatives focused on rate adequacy and prudent reserving philosophy. AM Best considers ALPS’ ERM framework and risk management capabilities appropriate for its risk profile.
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 Performance Assessments, 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.