SUBSCRIBE TO TMCnet
TMCnet - World's Largest Communications and Technology Community

TMC NEWS

TMCNET eNEWSLETTER SIGNUP

AM Best Upgrades Issuer Credit Rating of American Heartland Insurance Company
[October 09, 2019]

AM Best Upgrades Issuer Credit Rating of American Heartland Insurance Company


AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to "ccc-" from "cc" and affirmed the Financial Strength Rating (FSR) of C- (Weak) of American Heartland Insurance Company (American Heartland). Concurrently, AM Best has affirmed the FSR of C++ (Marginal) and the Long-Term ICR of "b" of United Equitable Insurance Company (United Equitable), its separately rated affiliate. The outlook of these Credit Ratings (ratings) remains stable. Both companies are domiciled in Skokie, IL.

The ratings of American Heartland reflect its balance sheet strength, which AM Best categorizes as very weak, as well as its adequate operating performance, limited business profile and marginal enterprise risk management (ERM).

The ratings of United Equitable reflect its balance sheet strength, which AM Best categorizes as weak, as well as its adequate operating performance, limited business profile and marginal ERM.

The Long-Term ICR upgrade reflects American Heartland's recent improvement in risk-adjusted capitalization and key underwriting leverage measures, while maintaining low volatility in combined and operating ratios. Additionally, recent growth in policyholders' surplus contributed to a five-year compound annual growth rate of 4.6%, while the ratios of loss reserves to policyholders' surplus and loss reserves to net premiums earned each reached five-year lows. Cumulatively, these factors contributed to the improved baseline Long-Term ICR corresponding to the very weak balance sheet strength assessment.



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.

####


[ Back To TMCnet.com's Homepage ]









Technology Marketing Corporation

2 Trap Falls Road Suite 106, Shelton, CT 06484 USA
Ph: +1-203-852-6800, 800-243-6002

General comments: tmc@tmcnet.com.
Comments about this site: webmaster@tmcnet.com.

STAY CURRENT YOUR WAY

© 2020 Technology Marketing Corporation. All rights reserved | Privacy Policy