A.M. Best Comments on Credit Ratings of AmTrust Financial Services, Inc. and Subsidiaries
March 16 2017 - 4:54PM
Business Wire
A.M. Best has commented that the Long-Term Issuer Credit
Rating (Long-Term ICR) of “bbb” of AmTrust Financial Services,
Inc. (AFSI) [NASDAQ:AFSI] (headquartered in New York, NY), and
all Long-Term Issue Credit Ratings assigned to company-issued
securities are unchanged by the announcement of a further delay in
the filing of its annual report (10-K) for year-end 2016.
Similarly, the Financial Strength Rating (FSR) of A (Excellent) and
the Long-Term ICR of “a” of the members of the AmTrust Group
and the FSR of A- (Excellent) and Long-Term ICR of “a-” of
AmTrust Title Insurance Company are unchanged by the
company’s announcement. The outlook of these Credit Rating
(ratings) is negative.
The delay in the Securities and Exchange Commission filing and
announced restatement of AFSI’s previously filed financial
statements for 2014 and 2015 place additional negative pressure on
its ratings. However, management has stated that the effect of the
restatement is expected to be limited to items related to timing of
revenue recognition for certain fee income related to its warranty
business and expensing of bonuses, and will have no material effect
on the ongoing insurance operations or the statutory entities.
Until the 10-K is filed, A.M. Best cannot determine the extent
to which the change in the restated financial results may be
material to its assessment of the ratings of AFSI or its
subsidiaries. The negative outlook reflects the potential for
negative rating action to be taken if the differences in the
restated financial results are sufficiently material to cause a
reassessment in A.M. Best’s view of the company’s financial
condition. In addition, A.M. Best continues to re-evaluate the
company’s enterprise risk management profile and capabilities in
light of the additional delay in completing the audit and filing
the 10-K.
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 © 2017 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/20170316006327/en/
A.M. BestJennifer Marshall, CPCU, ARM,
+1-908-439-2200, ext.
5327Directorjennifer.marshall@ambest.comorMichael
J. Lagomarsino, CFA, FRM, +1-908-439-2200, ext. 5810Senior
Directormichael.lagomarsino@ambest.comorChristopher
Sharkey, +1-908-439-2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorJim
Peavy, +1-908-439-2200, ext. 5644Director, Public
Relationsjames.peavy@ambest.com
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