OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has revised the outlook to positive from stable for the
Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the
Financial Strength Rating (FSR) of B (Fair) and the Long-Term ICR of
“bb” of Nations Insurance Company (Nations) (Cerritos, CA). The outlook
of the FSR remains stable.
The Credit Ratings (ratings) reflect Nations’ balance sheet strength,
which AM Best categorizes as adequate, as well as its adequate operating
performance, limited business profile and marginal enterprise risk
management.
The revised outlook for the Long-Term ICR to positive from stable is
based on the recent improvement of Nations’ operating performance and
risk-adjusted capitalization, driven by increased underwriting earnings
and investment income, which led to solid surplus growth. In addition,
Nations implemented a 50% quota share reinsurance contract effective
Jan. 1, 2017, which reduced its net underwriting leverage significantly.
This quota share reinsurance was increased to 60% effective Jan. 1,
2018. Furthermore, Nations has implemented rate increases in recent
years, which have enhanced its net underwriting income, and increased
investment allocation to long-term bonds from short-term investments,
which has increased its net investment yield and net investment income.
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.
Contacts
Kenneth Tappen
Senior Financial Analyst
+1
908 439 2200, ext. 5721
[email protected]
Brian
O’Larte
Director
+1 908 439 2200, ext. 5432
brian.o’[email protected]
Christopher
Sharkey
Manager, Public Relations
+1 908 439
2200, ext. 5159
[email protected]
Jim
Peavy
Director, Public Relations
+1 908 439
2200, ext. 5644
[email protected]
