Best’s News & Research Service - December 03, 2021 12:12 PM (EST)
AM Best Revises Outlooks to Positive for Texas Mutual Insurance Company
- December 03, 2021 12:12 PM (EST)
Oldwick //BestWire// - AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a+” (Excellent) of Texas Mutual Insurance Company (Texas Mutual) (Austin, TX).
The Credit Rating (ratings) reflect Texas Mutual’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
The revision of Texas Mutual’s outlooks to positive reflects its superior market position in the workers’ compensation (WC) segment in Texas, which is demonstrated by an average market share of 42% over the last five years. The company’s market share has consistently grown since the recession in 2008, when the company had a 29% market share; the company is the 16th largest writer of WC in the United States based on direct premiums written. The company’s business profile benefits from the company not being concentrated in any one industry as Texas Mutual is the market leader in all industry sectors: services, construction, retail, manufacturing, finance, health and education, hospitality, transportation, agriculture, mining and public administration industries. While maintaining this superior market position, the company has continued to generate consistent surplus gains and underwriting profits, which compare favorably to the WC composite.
The positive outlooks consider AM Best’s expectation that Texas Mutual will continue to demonstrate its’ integral nature to Texas’ WC market while maintaining risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), and underwriting results that compare favorably to the WC composite.
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 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.