Best’s News & Research Service - April 06, 2022 05:06 PM (EDT)
AM Best Assigns Credit Ratings to Federated Specialty Insurance Co; Affirms Ratings of Federated Mutual Ins Co and Main Subs
- April 06, 2022 05:06 PM (EDT)
Oldwick //BestWire// - AM Best has assigned a Financial Strength Rating (FSR) of A (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a” (Excellent) to Federated Specialty Insurance Company (Federated Specialty) (Dover, DE). The outlook assigned to these Credit Ratings (ratings) is stable. Concurrently, AM Best has affirmed the FSR of A+ (Superior) and the Long-Term ICRs of “aa-” (Superior) of Federated Mutual Insurance Company (Federated Mutual) and its main subsidiaries, Federated Service Insurance Company, Federated Reserve Insurance Company and Granite Re, Inc. (Oklahoma City, OK). These companies are collectively referred to as Federated Mutual Group (Federated). Additionally, AM Best has affirmed the FSR of A+ (Superior) and the Long-Term ICRs of “aa-” (Superior) of Federated Life Insurance Company (Federated Life). The outlook of these ratings is stable. All companies are domiciled in Owatonna, MN unless otherwise specified.
The ratings of Federated Specialty reflect the company’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
Federated Specialty is a newly formed specialty insurer focusing on U.S. excess and surplus lines accounts. These ratings reflect Federated Specialty’s strategic importance to its parent company, along with its common ownership and management, and the implicit and explicit support provided to Federated Specialty by Federated Mutual.
The ratings of Federated reflect the group’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, favorable business profile and appropriate ERM.
Federated maintains the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by a conservative investment portfolio, favorable reserve development and strong reinsurance program. Additionally, the group has reported consistent profitability with generally favorable return metrics. Federated provides a range of commercial property and casualty coverages throughout most of the continental United States.
The ratings of Federated Life reflect the company’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and appropriate 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.