CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK - MARCH 14, 2024 05:20 PM (EDT)
AM Best has revised the outlook for the Long-Term Issuer Credit Rating (Long-Term ICR) to negative from stable and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) of SECURA Insurance Company and its pooled subsidiary, SECURA Supreme Insurance Company (collectively referred to as SECURA). The outlook of the FSR is stable. At the same time, AM Best has assigned a Long-Term Issue Credit Rating of “a-” (Excellent) to the USD 75 million, 8.67% surplus notes, due 2039, issued by SECURA Insurance Company. The outlook assigned to this Credit Rating (rating) is negative. Both companies are domiciled in Neenah, WI.
The ratings reflect SECURA’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
The negative outlook on SECURA’s Long-Term ICRs reflects pressure on the insurer’s operating performance following weakened results in the past two years, primarily due to weather-related losses, adverse claim cost trends and sharply higher reinsurance costs. While SECURA’s operating results previously had outperformed its commercial casualty composite, 2022 and 2023 proved to be especially challenging. SECURA has implemented several strategic initiatives to return to profitability, including exiting the personal lines business. Effective Nov. 1, 2023, SECURA began exiting personal lines business in accordance with applicable state regulations and expects to achieve a complete exit by Dec. 31, 2025. Like most of its industry and regional peers, SECURA’s personal lines operations have been affected heavily by catastrophes and inflation, contributing to significant underwriting losses in homeowners and private passenger auto lines of business.
Other strategic initiatives include SECURA’s surplus notes to improve its capital position and support long-term growth and financial flexibility. Additionally, SECURA has implemented underwriting and pricing actions to improve underwriting profitability. AM Best expects the group’s earnings to continue improving gradually in 2024.
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.