AM Best Affirms Credit Ratings of Atlantic American Corporation and Its Subsidiaries
07 3월 2024 - 1:29AM
Business Wire
AM Best has affirmed the Financial Strength Rating (FSR)
of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term
ICR) of “a” (Excellent) of American Southern Insurance Company
(Topeka, KS) and its wholly owned and 100% reinsured subsidiary,
American Safety Insurance Company (collectively referred to as
American Southern Group). Additionally, AM Best has affirmed the
FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) of
Bankers Fidelity Life Insurance Company and its wholly owned and
100% reinsured subsidiaries, Bankers Fidelity Assurance Company and
Atlantic Capital Life Assurance Company (collectively referred to
as Bankers Fidelity Life Insurance Group [BFLIG]). Concurrently, AM
Best has affirmed the Long-Term ICR of “bbb-” (Good) of the parent
company, Atlantic American Corporation (Atlantic American) [NASDAQ:
AAME]. All companies are domiciled Atlanta, GA, unless otherwise
specified. The outlook of these Credit Ratings (ratings) is
stable.
The ratings of American Southern Group reflect its balance sheet
strength, which AM Best assesses as very strong, as well as its
adequate operating performance, neutral business profile and
appropriate enterprise risk management (ERM).
American Southern Group’s balance sheet strength is supported by
the strongest level of risk-adjusted capitalization, as measured by
Best’s Capital Adequacy Ratio (BCAR). Financial flexibility is
sufficient considering the group’s strongest BCAR scores and access
to capital markets through the publicly traded parent company,
Atlantic American. These positive rating factors are offset
partially by the group’s substantial and recently increased annual
stockholder dividend payments to the parent, which Atlantic
American uses to service its debt. The ratings also consider the
financial leverage and interest coverage at Atlantic American, with
an adjusted debt-to-capital ratio of 22.9% as of Sept. 30, 2023.
The interest coverage ratios benefit from a trend of underwriting
and operating earnings in the insurance operating companies.
American Southern Group has exhibited operating profitability
historically over the past decade, driven by positive underwriting
income and net investment income. Underwriting results have been
profitable since 2014, attributed to management’s disciplined
underwriting approach and local market expertise. While they
remained positive, underwriting results declined through the first
nine months of 2023, driven by increased losses. The increase in
losses was due mainly to a higher frequency and severity of claims
in the auto liability and general liability lines of business.
Countering this increase, were lower losses related to the auto
physical damage line of business due to a decrease in exposure. The
neutral business profile assessment reflects American Southern
Group’s established position as an experienced writer of specialty
program business, primarily for state governments, local
municipalities and other large motor pools and fleets.
The ratings of BFLIG reflect its balance sheet strength, which
AM Best assesses as very strong, as well as its marginal operating
performance, neutral business profile and appropriate ERM.
BFLIG maintains the strongest level of risk-adjusted
capitalization, as measured by BCAR, for its insurance and
investment risks. Despite volatility in operating results in recent
years, the organization’s capital and surplus levels have been
supported by material capital contributions from its parent,
Atlantic American. Balance sheet strength is enhanced further by
solid liquidity measures and access to an external borrowing
capacity that has not been drawn on. While operating performance
has fluctuated due to underwriting performance in its Medicare
supplement segment, results have trended favorably since 2022 as
the organization has undertaken several corrective measures. These
measures included rate increases, more stringent underwriting
practices, and the gradual diversification of business to lower
risk ancillary products. BFLIG’s neutral business profile
assessment reflects the continued diversification of its business
mix through the expansion of these ancillary accident and health
and life products. BFLIG’s ratings also reflect its strategic role
within the Atlantic American organization.
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 Guide to
Best's Credit Ratings. For information on the proper use of
Best’s Credit Ratings, Best’s Performance Assessments, Best’s
Preliminary Credit Assessments and AM Best press releases, please
view Guide to Proper Use of Best’s Ratings &
Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
Copyright © 2024 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Christine DePalma, CPCU Financial Analyst +1
908 882 1732 christine.depalma@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Timothy Willey Financial Analyst +1 908 882
2433 timothy.willey@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com
Atlantic American (NASDAQ:AAME)
과거 데이터 주식 차트
부터 9월(9) 2024 으로 10월(10) 2024
Atlantic American (NASDAQ:AAME)
과거 데이터 주식 차트
부터 10월(10) 2023 으로 10월(10) 2024