AM Best Upgrades Credit Ratings of Synergy Comp Insurance Company
AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to "a" (Excellent) from "a-" (Excellent) of Synergy Comp Insurance Company (Synergy Comp) (Sharon, PA). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.
The ratings reflect Synergy Comp's balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
The rating upgrades reflect an improved balance sheet strength assessment, supported by Synergy Comp's level of risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR), which is assessed as strongest. The improved balance sheet assessment reflects Synergy Comp's modest underwriting and investment leverage measures, sound liquidity ratios, and organic surplus growth achieved through strong operating performance that has driven retained earnings over the long term. Synergy Comp's risk-adjusted capitalization has benefited from sustained favorable reserve development patterns over the long term when viewed on an accident and a calendar year basis that have benefited underwriting performance. While Synergy Comp's sustained underwriting profitability has driven the large majority of surplus growth given management's commitment to accurate pricing and conservative reserving, retained earnings have been augmented by increasing levels of invstment income.
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