A.M. Best Assigns Credit Ratings to AmTrust Title Insurance Company
November 18 2016 - 2:05PM
Business Wire
A.M. Best has assigned a Financial Strength Rating of A-
(Excellent) and a Long-Term Issuer Credit Rating of “a-” to
AmTrust Title Insurance Company (ATIC) (New York, NY). ATIC
is a subsidiary of AmTrust Financial Services, Inc.
(AmTrust) [NASDAQ:AFSI]. The outlook assigned to these Credit
Ratings (ratings) is stable.
The ratings reflect ATIC’s supportive risk-adjusted
capitalization level, its seasoned and experienced management team,
and the development and implementation of ATIC’s enhanced business
plan following its acquisition by AmTrust in 2014. The subsequent
purchase of First Nationwide Title Agency in 2016 is another key
element in the evolution of that plan. The ratings also reflect the
explicit support that has been provided to ATIC by AmTrust and
affiliates within the enterprise, including capital infusions and a
guaranty agreement from AmTrust, and an excess of loss reinsurance
agreement with AmTrust International Insurance, Ltd.
Offsetting rating factors include ATIC’s minimal profile in the
title insurance market, the concentration of its business in the
state of New York and the increasingly competitive environment in
the commercial title space in which it plans to focus. While
ownership of the historically profitable First Nationwide platform
affords the company a solid base from which to grow, a number of
larger competitors in the title market are looking to the
commercial space as a key growth area, which will challenge ATIC’s
management as it seeks to implement its plans over the near to
midterm.
The outlooks reflect A.M. Best’s expectations that ATIC will
maintain risk-adjusted capitalization levels that support its
liabilities while achieving operating performance that is
reasonably in-line with its plans. Negative rating action could
occur should ATIC’s performance not be in line with the business
plan submitted to A.M. Best in key areas, such as premium growth
exceeding expectations or elevated losses or expenses that cause
deterioration of surplus. Negative rating action also could occur
should there be a change in the financial condition of ATIC’s
ultimate parent, AmTrust.
This press release relates to Credit Ratings that have been
published on A.M. 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 A.M.
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.
A.M. Best is the world’s oldest and most authoritative
insurance rating and information source. For more information,
visit www.ambest.com.
Copyright © 2016 by A.M. Best Rating
Services, Inc. and/or its subsidiaries. ALL RIGHTS
RESERVED.
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version on businesswire.com: http://www.businesswire.com/news/home/20161118005694/en/
A.M. BestJennifer MarshallDirector+1
908-439-2200, ext.
5327jennifer.marshall@ambest.comorMichael J.
Lagomarsino, CFA, FRMSenior Director+1 908-439-2200,
ext. 5810michael.lagomarsino@ambest.comorChristopher
SharkeyManager, Public Relations+1 908-439-2200, ext.
5159christopher.sharkey@ambest.comorJim
PeavyDirector, Public Relations+1 908-439-2200, ext.
5644james.peavy@ambest.com
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