Best’s News & Research Service - February 25, 2020 02:11 PM (EST)
AM Best Places Credit Ratings of American Sentinel Insurance Company Under Review With Developing Implications
- February 25, 2020 02:11 PM (EST)
Oldwick //BestWire// - AM Best has placed under review with developing implications the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” of American Sentinel Insurance Company (American Sentinel) (Harrisburg, PA).
This Credit Rating (rating) action reflects the material deterioration in American Sentinel’s risk-adjusted capitalization in 2019 due to higher-than-expected underwriting losses and loss reserve development. In response, the company has already infused additional capital and operational support via the parent company, LD Investments LLC. Further, management has indicated a plan to implement an inter-company pooling agreement between American Sentinel and the newly acquired affiliate, Seaview Insurance Company, a non-rated California-domiciled surety writer with $11.5 million in surplus. The ultimate effectiveness of these initiatives remains uncertain as this time. The ratings will remain under review until the business plan is finalized, and AM Best analyzes the proposed 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 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.