[February 07, 2019] |
 |
AM Best Affirms Credit Ratings of The Hartford Steam Boiler Group's Members
AM Best has affirmed the Financial Strength Rating (FSR) of A++
(Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of
"aa+" of the members of The Hartford Steam Boiler Group (HSB). The
outlook of these Credit Ratings (ratings) remains stable. (See below for
a detailed listing of the companies.)
The ratings reflect HSB's balance sheet strength, which AM Best
categorizes as strongest, as well as its very strong operating
performance, favorable business profile and very strong enterprise risk
management (ERM).
HSB's balance sheet strength assessment is underpinned by its
risk-adjusted capitalization being at the strongest level, as measured
by Best's Capital Adequacy Ratio (BCAR), as well as its good liquidity,
conservative investments allocation and track record of positive
reserves development.
The company has a history of very strong operating earnings, evidenced
by a five-year average return on equity of 18.6% (2013-2017). For 2018,
AM Best expects the company to generate a sound combined ratio of
approximately 90%.
HSB has a strong reputation for being a specialist insurer in the U.S.
commercial market for boiler and machinery breakdown risks, where it
holds a leading market share by premium written. HSB's business profile
also benefits from moderate geographical diversification, which stems
from business sourced by the company's international subsidiaries. ERM
is considered to be embedded throughout the whole organization, which
has historically put a great focus on loss prevention practices.
The FSR ofA++ (Superior) and the Long-Term ICRs of "aa+" have been
affirmed with stable outlooks for the following members of The Hartford
Steam Boiler Group:
-
The Hartford Steam Boiler Inspection and Insurance Company
-
The Hartford Steam Boiler Inspection and Insurance Company of
Connecticut
-
The Boiler Inspection and Insurance Company of Canada
-
HSB Specialty Insurance Company
-
HSB Engineering Insurance Limited
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 Understanding
Best's Credit Ratings. For information on the proper media
use of Best's Credit Ratings and AM Best press releases, please view Guide
for Media - Proper Use of Best's Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190207005848/en/
[ Back To TMCnet.com's Homepage ]
|