AM Best Revises Issuer Credit Rating Outlook to Positive for Revol One Insurance Company
- March 27, 2025 01:07 PM (EDT)
//BestWire// - AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of “bbb” (Good) of Revol One Insurance Company (Revol One Financial) (Spring Lake, MI). The outlook of the FSR is stable.
The Credit Ratings (ratings) reflect Revol One Financial’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The revised outlook to positive from stable for Revol One Financial’s Long-Term ICR reflects an improving business profile and progress in executing its business plan. The management team continues to be strengthened, and the company continues to execute on operational improvements and the ERM process continues to be bolstered to support the companies’ growing risks. The balance sheet strength also has improved through capital contributions, reinsurance and the Federal Home Loan Bank (FHLB) membership. Significant capital contributions from the parent company, Spartan Insurance Holdings, LLC, are expected to support the growth of Revol One Financial as demonstrated through a commitment letter. Reinsurance support on the annuity products is expected to provide the company with relief from new business strain, allowing them to grow in line with its business plan. The FHLB membership provides the company with additional liquidity.
Partially offsetting these positive factors is the execution risk related to the business plan. Some volatility is expected going forward due to significant growth plans and current concentration in the annuity market. AM Best will continue to monitor Revol One Financial’s progress as it looks to execute on its new business plan.
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.