Best’s News & Research Service - May 06, 2022 02:00 PM (EDT)
AM Best Removes from Under Review, Downgrades Credit Ratings of Arizona Automobile Ins Co; Affirms Ratings of Alfa Mutual Ins Co
- May 06, 2022 02:00 PM (EDT)
Oldwick //BestWire// - AM Best has removed from under review with negative implications and downgraded the Financial Strength Rating (FSR) to A (Excellent) from A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” (Excellent) from “aa-” (Superior) of Arizona Automobile Insurance Company (AAIC) (Phoenix, AZ). The outlook assigned to these Credit Ratings (ratings) is stable. Concurrently, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Alfa Mutual Insurance Company (Alfa) and its remaining members of the Alfa Insurance Group (Alfa group). (See below for a detailed list of these companies and ratings). At the same time, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Alfa Life Insurance Corporation (Alfa Life). The outlook of these ratings is stable. All companies are headquartered in Montgomery, AL.
AAIC was acquired by Trexis One Insurance Corporation, which is a member of the Alfa group. AAIC is fully integrated into Alfa’s strategic plans and markets non-standard automobile insurance for the Alfa group primarily in Arizona, Colorado and Nevada. The ratings downgrade of AAIC reflects the rating differential between the former and current ownership, with the company becoming a member of the Alfa group, effective March 1, 2022.
The ratings of Alfa reflect the group’s balance sheet strength, which AM Best assesses as strongest, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management (ERM). Alfa primarily underwrites a mix of personal automobile, personal property, business insurance and specialty insurance in its three core states of Alabama, Georgia and Mississippi. The company also underwrites non-standard automobile coverage in 13 states.
The ratings of Alfa Life reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM. The company is a wholly owned subsidiary of Alfa and distributes life insurance products primarily in Alabama, Mississippi and Georgia.
The FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) have been affirmed for the following members of Alfa Insurance Group:Alfa Mutual Insurance Company
- Alfa Mutual Fire Insurance Company
- Alfa Mutual General Insurance Company
- Alfa General Insurance Corporation
- Alfa Insurance Corporation
- Trexis Insurance Corporation
- Trexis One Insurance Corporation
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.