Best’s News & Research Service - November 30, 2023 08:39 AM (EST)
AM Best Revises Outlooks to Stable for the Members of Revolutionary Insurance Group
- November 30, 2023 08:39 AM (EST)
Oldwick //BestWire// - AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) of Concord Specialty Insurance Company (Pierre, SD) and Lexington National Insurance Corporation (Stuart, FL). Together these companies comprise Revolutionary Insurance Group (Revolutionary).
These Credit Ratings (ratings) reflect Revolutionary’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.
The revised outlooks to stable from negative reflect Revolutionary’s improved operating performance metrics in recent years that are more in-line with their composite average (fidelity & surety). Revolutionary’s profitable operating performance has been driven by improved underwriting results together with growing investment earnings and other income. Additionally, the group’s risk-adjusted capitalization has stabilized primarily due to the growth of its policyholders’ surplus, driven by operating earnings.
The group’s very strong level of balance sheet strength is supported by its strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), conservative investment portfolio along with steady surplus growth in recent years partially offset by elevated underwriting leverage metrics. Although
Revolutionary is in the process of transitioning its product offerings, the group’s limited business profile recognizes the product concentration as a surety writer, mostly bail bonds.
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.