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Best’s News & Research Service - May 15, 2024 03:03 PM (EDT)

AM Best Assigns Credit Ratings to Securian Specialty Lines, Inc.

  • May 15, 2024 03:03 PM (EDT)
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//BestWire// - AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to Securian Specialty Lines, Inc. (Securian Specialty) (Macon, GA). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect Securian Specialty’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).

The ratings also consider Securian Specialty’s role as a member of Securian Financial Group, Inc. Securian Specialty is a newly formed surplus lines carrier and is a wholly owned subsidiary of Securian Casualty Company (Securian Casualty). Initially, Securian Specialty plans to offer products adjacent to what Securian Casualty currently offers to lenders. The business plan calls for an expansion to all 50 states over the next five years and Securian Specialty will leverage Securian Casualty’s existing distribution network, as well as new distributors.

Securian Specialty’s very strong balance sheet strength is underpinned by projected strongest risk-adjusted capitalization, as measured by Best Capital Adequacy Ratio (BCAR), and a sound business plan for the next five years. Operating performance metrics are expected to be comparable with those of the credit composite average, while an underwriting loss is expected during the implementation phase.

The ratings also consider the execution risk inherent in start-up organizations and the potential challenges management faces to execute on the business plan. Securian Specialty will enjoy the benefits of Securian Financial Group, Inc.’s resources including legal, ERM and asset management, which partially mitigates this risk. The company will share Securian Casualty’s management team, which has a demonstrated and sound understanding of its chosen markets.  

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. 

Georgia United States Financial Strength Press Release Property And Casualty Insurers Best's Credit Rating Action Issuer Credit Rating

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