AM Best Assigns Credit Ratings to First European Title Insurance Company Limited; Affirms Credit Ratings of Its Title Insuran...
October 16 2019 - 1:40PM
Business Wire
AM Best has assigned a Financial Strength Rating (FSR) of
A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term
ICR) of “a” to First European Title Insurance Company Limited
(Malta). The outlook assigned to these Credit Ratings (rating) is
stable. Concurrently, AM Best has affirmed the FSR of A (Excellent)
and the Long-Term ICR of “a” of First American Title Insurance
Company (Omaha, NE) and its title subsidiaries. Collectively, along
with First European Title Insurance Company Limited, these
companies are referred to as First American Title Insurance Group
(FATIG). In addition, AM Best has affirmed the Long-Term ICR of
“bbb” for the parent holding company, First American Financial
Corporation (Delaware) [NYSE: FAF]. The outlook of these ratings is
stable. (See below for a detailed listing of the companies and
ratings.)
AM Best also has affirmed the FSR of A (Excellent) and the
Long-Term ICR of “a” of First American Property & Casualty
Insurance Company and First American Specialty Insurance Company,
collectively referred to as First American PC Companies (FAPCC).
The outlook of these ratings is stable. These companies are
domiciled in Santa Ana, CA.
The ratings of FATIG reflect the group’s balance sheet strength,
which AM Best categorizes as strongest, as well as its adequate
operating performance, neutral business profile and appropriate
enterprise risk management (ERM).
FATIG maintains a solid market position within the U.S. title
insurance industry as its second largest underwriter based on 2018
direct premiums written. Policies are distributed on a direct basis
and through a network of independent agents. The group invests
heavily in its title plant, which is one of the most comprehensive
in the industry. Operating results have generally been in-line with
the title industry composite averages and supportive of surplus
growth. FATIG benefits from a strong franchise value, financial
flexibility and operational support from FAF, which maintains
relatively modest financial leverage and solid interest
coverage.
The ratings of the FAPCC group reflect its balance sheet
strength, which AM Best categorizes as very strong, as well as its
marginal operating performance, neutral business profile and
appropriate ERM.
FAPCC primarily provides homeowners and renters insurance
throughout the United States with a geographic concentration in the
Western region. Operating results have been on a downward trend due
to increased claim frequency and severity. The group reported
underwriting losses in 2017 and 2018, which was driven largely by
the unprecedented California wildfire activity.
The FSR of A (Excellent) and the Long-Term ICRs of “a” have been
affirmed with stable outlooks for the subsidiaries of First
American Financial Corporation:
- First American Title Insurance Company
- First American Title Insurance Company of Australia Pty
Limited
- First American Title Insurance Company of Louisiana
- First Title Insurance plc
- Ohio Bar Title Insurance Company
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 an exclusive 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/20191016005791/en/
Kourtnie Beckwith Financial Analyst +1 908 439
2200, ext. 5124 kourtnie.beckwith@ambest.com Fred Eslami
Associate Director +1 908 439 2200, ext. 5406
fred.eslami@ambest.com Christopher Sharkey Manager,
Public Relations +1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com Jim Peavy Director, Public
Relations +1 908 439 2200, ext. 5644
james.peavy@ambest.com
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