Best’s News & Research Service - March 16, 2021 02:51 PM (EDT)
AM Best Withdraws Credit Ratings of Nations Insurance Company
- March 16, 2021 02:51 PM (EDT)
Oldwick //BestWire// - AM Best has affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bb+” of Nations Insurance Company (NIC) (Cerritos, CA). The outlook of these Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn the ratings as the company has requested to no longer participate in AM Best’s interactive rating process.
The ratings reflect NIC’s balance sheet strength, which AM Best assesses as adequate, as well as its adequate operating performance, limited business profile and marginal enterprise risk management.
The affirmation of the Long-Term ICR is based on NIC’s improved balance sheet strength in recent years, driven by its risk-adjusted capitalization, reduced underwriting leverage and stabilizing loss reserve development trends. Furthermore, NIC has implemented a number of initiatives, such as rate increases in recent years, which have improved its underwriting performance, coupled with a change in investment allocation to long-term bonds, which has improved its investment income, both leading to improved surplus growth.
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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.