TMCnet News
A.M. Best Withdraws Credit Ratings of Financial American Property and Casualty Insurance CompanyA.M. Best has downgraded the Financial Strength Rating (FSR) to B+ (Good) from B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) to "bbb-" from "bbb+" of Financial American Property and Casualty Insurance Company (FAMPAC) (Kerrville, TX). The outlook of the FSR has been revised to negative from stable, while the outlook of the Long-Term ICR remains negative. Concurrently, A.M. Best has withdrawn the Credit Ratings (ratings) as the company has requested to no longer participate in A.M. Best's interactive rating process. The downgrade of the Long-Term ICR reflects continued deterioration in FAMPAC's underwriting results, with underwriting and operating losses reported annually since 2011. Such losses accelerated during 2015, resulting in substantial capital erosion; however, some improvement was seen in 2016. In A.M. Best's opinion, it is unlikely that FAMPAC can achieve sustainable earnings in the near term, and that any further losses may place additional pressure on the current capitalization level. The principal drivers of these losses have been the company's lack of scale and heavy expense structure, despite management's efforts to reduce overhead costs in recent years. This press release relates to Credit Ratings that have been published on .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/20170802006136/en/ |
