MAY 09, 2016 03:08 PM (EDT)
A.M. Best Upgrades Ratings of Spartan Insurance Company
|Dan Hofmeister |
+1 908 439 2200, ext. 5385
Assistant Vice President
+1 908 439 2200, ext. 5125
Manager, Public Relations
+1 908 439 2200, ext. 5159
Assistant Vice President, Public Relations
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
OLDWICK - MAY 09, 2016 03:08 PM (EDT)
A.M. Best has upgraded the financial strength rating (FSR) to B++ (Good) from B+ (Good) and the issuer credit rating (ICR) to “bbb” from “bbb-” of Spartan Insurance Company (Spartan) (Pearland, TX). The outlook for the FSR has been revised to stable from positive, while the outlook for the ICR remains positive.
The rating actions reflect the continuation of Spartan’s solid operating performance, low liabilities, favorable underwriting leverage measures and continued surplus appreciation. This is due primarily to the shift in Spartan’s business profile to a direct writer of non-owner private passenger auto liability business, which has resulted in consistent underwriting and operating profits in the past four years. These profits have led to organic surplus generation and decreased underwriting leverage ratios. In addition, Spartan maintains a conservative investment portfolio, which generates investment income to supplement underwriting earnings.
These positive rating factors are partially offset by Spartan’s elevated expense position and geographic concentration of risk. Spartan continues to explore opportunities to offer non-owner private passenger auto liability in other states in the near term. However, in the interim, as a single-state writer with limited product offerings, Spartan’s results are exposed to judicial, economic and regulatory changes. Any material changes in these areas could potentially have a negative impact on the company’s overall results.
This press release relates to rating(s) that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page.
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