Best’s News & Research Service - August 15, 2024 02:50 PM (EDT)
AM Best Withdraws Credit Ratings of Kentucky Growers Insurance Company
- August 15, 2024 02:50 PM (EDT)
//BestWire// - AM Best has downgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb” (Good) from “bbb+” (Good) and affirmed the Financial Strength Rating of “B++” (Good) of Kentucky Growers Insurance Company (Kentucky Growers) (Lexington, KY). The outlook of these Credit Ratings (ratings) has been revised to negative from stable. Concurrently, AM Best has withdrawn these ratings as the company has requested to no longer participate in AM Best’s interactive rating process.
The ratings reflect Kentucky Growers’ balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, limited business profile and appropriate enterprise management (ERM).
The Long-Term ICR downgrade is based on the recent deterioration in Kentucky Growers’ policyholder surplus, driven by an increased frequency and severity of storm losses, which led to a decline in risk-adjusted capitalization.
The outlook revision to negative from stable reflects the continued pressure on the company’s marginal operating performance assessment associated with increased volatility in its most recent five-year period and through the second quarter of 2024. It also reflects AM Best’s concern over the effectiveness of the company’s ERM.
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.