AM Best Revises Outlooks to Stable for Members of Bankers Insurance Group
June 20 2024 - 4:03PM
Business Wire
AM Best has revised the outlooks to stable from negative
and affirmed the Financial Strength Rating of B+ (Good) and the
Long-Term Issuer Credit Ratings of “bbb-” (Good) of the members of
Bankers Insurance Group (Bankers). The group’s members are Bankers
Insurance Company (St. Petersburg, FL) and its property/casualty
subsidiaries, Bankers Specialty Insurance Company (Metairie, LA)
and First Community Insurance Company (St. Petersburg, FL).
The Credit Ratings (ratings) reflect Bankers’ balance sheet
strength, which AM Best assesses as adequate, as well as its
marginal operating performance, limited business profile and
appropriate enterprise risk management (ERM).
The revised outlooks to stable from negative reflect significant
improvement in Bankers’ balance sheet metrics and level of
risk-adjusted capitalization, as measured by Best’s Capital
Adequacy Ratio (BCAR). Beginning in 2022, the group began
non-renewing specific classes of homeowner’s business with the last
policy being non-renewed in 2024. The volatility within the
homeowners segment from elevated weather events in more recent
years, coupled with rising reinsurance and litigation costs has
pressured the group’s operating performance and balance sheet
metrics in more recent years. While the increasing trend in
litigation cases was addressed with Assignment of Benefits reform
in December 2022, the group still faced elevated reinsurance costs
from the rising frequency and severity of weather-related events.
With the exit from the homeowners line of business and reduction in
probable maximum losses, subsequent reinsurance needs have been
lowered significantly. An additional benefit also has been the
improvement of the overall risk characteristics of the book of
business, which now focuses on commercial multi-peril and
bail/surety business where Bankers remains a top writer. It is AM
Best’s expectation that these initiatives will continue to
stabilize previously reported volatility in operating performance
metrics while aiding organic surplus growth.
Bankers’ limited business profile reflects the limited
geographic spread of risk of which the majority still remains in
Florida. An appropriate ERM program is maintained through risk
appetite and tolerance statements with risk management capabilities
appropriately aligned with the group’s risk profile.
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.
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Josie Novak Financial Analyst +1 908 882
2207 josie.novak@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Richard Attanasio Senior Director +1 908 882
1638 richard.attanasio@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com