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A.M. Best Removes From Under Review With Negative Implications and Affirms Credit Ratings of Golden Insurance Company, A Risk Retention GroupA.M. Best has removed from under review with negative implications and affirmed the Financial Strength Rating of B- (Fair) and the Long-Term Issuer Credit Rating of "bb-" of Golden Insurance Company, A Risk Retention Group (Golden) (Incline Village, NV). The outlook assigned to these Credit Ratings (ratings) is negative. The ratings were placed under review with negative implications on Dec. 20, 2016, due to a change in the company's premium earning pattern prescribed by the Nevada Department of Insurance. The change resulted in increased reserve levels and reductions in policyholders' surplus. In order to gain an adequate understanding of the company's unearned premium reserve equity and risk-adjusted capitalization, the analytical team concluded that a review of the 2016 year-end actuarial report was needed. The review of the 2016 actuarial report resulted in a determination that the risk-adjusted capitalization remained supportive of the current rating level. However, concerns remained regarding elevated underwriting losses and expenses, stemming from general liability claims in 2016, and how the new premium earnings pattern would affect future operating results. The negative outlooks reflect the continued uncertainty regarding the company's loss reserve adequacy and future operating profitability. These negative rating factors are mitigated by the company's profitability through the irst quarter of 2017. Additionally, the company has contracted a reputable captive manager and other support staff in recent years to improve their risk management and financial reporting processes. This press release relates to Credit Ratings 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. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating Action Press Releases. A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED. #### View source version on businesswire.com: http://www.businesswire.com/news/home/20170613006332/en/ |
