AM Best Affirms Credit Ratings of Safety Insurance Group, Inc. and Its Subsidiaries
April 23 2019 - 2:31PM
Business Wire
AM Best has affirmed the Financial Strength Rating of A
(Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR)
of “a+” of Safety Insurance Company, Safety Indemnity Insurance
Company and Safety Property and Casualty Company,
collectively referred to as Safety Group (Safety). Concurrently, AM
Best has affirmed the Long-Term ICR of “bbb+” of Safety Insurance
Group, Inc. (Delaware) [NASDAQ/GS: SAFT], the publicly-traded
parent of Safety. The outlook of these Credit Ratings (ratings) is
stable. All companies are domiciled in Boston, MA, except where
specified.
The ratings reflect Safety’s balance sheet strength, which AM
Best categorizes as very strong, as well as its strong operating
performance, neutral business profile and appropriate enterprise
risk management (ERM).
The very strong balance sheet strength is derived from
risk-adjusted capitalization maintained at the strongest level,
favorable loss reserve development trends and sound liquidity
measures. Safety also benefits from the financial flexibility
afforded by its publicly-traded parent, which has a debt-free
balance sheet and the ability to access the public debt and equity
markets to raise capital if needed.
Safety’s operating performance has been favorable, supported by
both favorable net underwriting income and net investment income.
Above-average profitability has supported capital growth and is
derived from management’s ability to successfully manage the
challenges in Massachusetts, where it writes the majority of its
business.
The business profile is considered neutral due to its leading
market positions and diverse product offerings, partially offset by
its concentration in Massachusetts, which exposes the group to
above-average economic, regulatory and legislative risks. ERM is
considered appropriate for the group’s size and the complexity of
its underwriting, investment and other risks based on its ERM
framework and controls.
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 Understanding Best’s Credit Ratings. For
information on the proper media use of Best’s Credit Ratings and AM
Best press releases, please view Guide for Media - Proper
Use of Best’s Credit Ratings and AM Best Rating Action Press
Releases.
AM Best is a global rating agency and information provider
with a unique focus on the insurance industry. Visit
www.ambest.com for more information.
Copyright © 2019 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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version on businesswire.com: https://www.businesswire.com/news/home/20190423005857/en/
Jonathan Harris, CFA, FRM, CPCU, ARMSenior Financial
Analyst+1 908 439 2200, ext.
5771jonathan.harris@ambest.com
Christopher SharkeyManager, Public Relations+1
908 439 2200, ext. 5159christopher.sharkey@ambest.com
Jacqalene Lentz, CPADirector+1 908 439 2200,
ext. 5762jacqalene.lentz@ambest.com
Jim PeavyDirector, Public Relations+1 908 439
2200, ext. 5644james.peavy@ambest.com
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