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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 19, 2020 12:17 PM (EDT)
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-” of Boston Indemnity Company, Inc., Great Midwest Insurance Company (GMIC), Houston Specialty Insurance Company, Oklahoma Specialty Insurance Company and Imperium Insurance Company. All companies are members of HIIG Group and are headquartered in Houston, TX.
The ratings reflect HIIG Group’s balance sheet strength, which AM Best categorizes as very strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management.
The outlook revision to stable from negative reflects the group’s numerous actions since the last rating cycle to improve the balance sheet strength. Specifically, HIIG Group benefited from multiple capital contributions from the parent, which significantly improved the company’s risk-adjusted capitalization. As a result, the group’s Best’s Capital Adequacy Ratio (BCAR) is now assessed as strongest. In addition, in an effort to stabilize historical reserve volatility, the company has entered into a loss portfolio transfer with Randall & Quilter Group to address the most problematic accident years. Furthermore, management has taken a number of other corrective actions to stabilize the reserve volatility in recent years, including the reorganization of the claims department. Going forward, AM Best will continue to monitor the impact of these actions closely. Negative rating action may occur if the company’s ERM framework is unable to contain future reserve, investment or underwriting volatility.
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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.