Fitch Affirms American Financial - Analyst Blog
29 3월 2013 - 2:45AM
Zacks
Recently, Fitch Ratings affirmed the issuer default rating (IDR)
of American Financial Group Inc. (AFG) at “A-”
along with the debt rating on its senior unsecured notes at “BBB+”.
Additionally, the credit rating agency affirmed the insurer
financial strength (IFS) rating of American Financial’s principal
operating subsidiaries at “A+”. The outlook for all these ratings
is stable.
The rating affirmation was based on American Financial’s strong
capital and liquidity position, satisfactory financial leverage and
a history of outperforming peers in terms of profitability.
However, the company’s reducing underwriting profitability in the
property & casualty business and the weak interest rate
environment are causes of concern for the rating agency. Moreover,
the rapid growth in the annuity business amid the low interest rate
environment is also concerning, as it could adversely impact future
earnings.
Fitch may revise the ratings upward if American Financial’s
underwriting and investment results increase to the level of
companies with a higher credit rating, its property & casualty
reserve adequacy level improves or the company reduces the higher
end of the target range for long-term financial leverage to less
than 15%.
On the other hand, Fitch may downgrade the ratings of American
Financial if the property and casualty combined ratio stays above
100% over the long term or the property & casualty Prism score
falls to ‘adequate’. Other factors that could result in a downward
revision in ratings are a surge in the financial leverage beyond
30% and a rise in surrender rates or decline in operating results
of the annuity business. Further, the IFS rating of the
subsidiaries could be lowered if Fitch deems their strategic
importance to be reduced.
American Financial currently carries a Zacks Rank #3 (Hold).
Other property and casualty insurers worth considering are
Cincinnati Financial Corp. (CINF), Arch
Capital Group Ltd. (ACGL) and Navigators Group
Inc. (NAVG). All these companies carry a Zacks Rank #1
(Strong Buy).
ARCH CAP GP LTD (ACGL): Free Stock Analysis Report
AMER FINL GROUP (AFG): Free Stock Analysis Report
CINCINNATI FINL (CINF): Free Stock Analysis Report
NAVIGATORS GRP (NAVG): Free Stock Analysis Report
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Zacks Investment Research
American Financial (NYSE:AFG)
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부터 6월(6) 2024 으로 7월(7) 2024
American Financial (NYSE:AFG)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024