OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has assigned a Financial Strength Rating (FSR) of A- (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” to Clear Spring Property and Casualty Company (Clear Spring). Concurrently, AM Best has removed from under review with negative implications and downgraded the FSR to A- (Excellent) from A (Excellent) and the Long-Term ICRs to “a-” from “a” of Lackawanna Casualty Company and its subsidiaries, Lackawanna American Insurance Company and Lackawanna National Insurance Company. The outlook assigned to these Credit Ratings (ratings) is stable. Clear Spring is domiciled in Dallas, TX, while the three Lackawanna companies are domiciled in Wilkes-Barre, PA. The companies are collectively referred to as Lackawanna Insurance Group (Lackawanna).
The ratings reflect Lackawanna’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The ratings assigned to Clear Spring reflect the company’s role as a member of the group. Factors supporting this relationship include common ultimate ownership and management. Explicit support is provided through Clear Spring’s participation in the inter-company pooling agreement.
The rating downgrades reflect a revision in AM Best’s assessment of the group’s operating performance to adequate from strong. This rating action is in response to less favorable comparisons with peer companies assessed as having strong operating performances over the most recent five-year period in metrics such as loss and loss adjustment expense ratio and operating ratio. This places the group more in line with companies in the composite assessed as having adequate operating performances. The assessment also takes into consideration the execution risk associated with the blending of the distinct lines of business and geographic delineation of the member companies, which may affect prospective operating performance.
Negative rating actions would occur with a decline in the group’s risk-adjusted capitalization, operating performance well outside expected ranges, or business profile modifications that fail to gain traction.
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.
Manager, Public Relations
+1 908 439 2200, ext. 5159
Director, Public Relations
+1 908 439 2200, ext. 5644
Subscribe to PICANTE via Email
Follow us on Facebook
Subaru Chooses TomTom Navigation for All-New US Vehicles
Continuity Wraps Up a Strong 2019 with a Strategic Acquisition, the Launch of a New Product and Multiple New Client Signings
ZetaDisplay adapts its organization to increase scalability and growth
GridGain’s Strong Market Momentum Continued in 2019
Microchip Joins Responsible Business Alliance (RBA) – the Global Industry Coalition Dedicated to Corporate Social Responsibility
CDK Global to Announce Second Quarter Fiscal 2020 Financial Results on February 4, 2020
Phenom People Raises $30 Million in Series C Proving the HR Shift Towards AI-Powered Talent Experiences
NETSOL Technologies to Ring Nasdaq Closing Bell on Tuesday, January 21, 2020
Vouch uses Socotra’s cloud-based platform to launch insurance products tailored for high-growth startups
Timeout called on online negativity as mobile users are invited to #TextForHumanity
Design Intelligence Award 2020 Is Looking for the Most Outstanding Design
CORRECTING and REPLACING Robins Kaplan Announces Bremer Bank Employee-Shareholders File Class-Action Lawsuit Against Three Trustees of Otto Bremer Trust
Shareholder Alert: Robbins LLP Announces Mohawk Industries, Inc. (MHK) Sued for Misleading Shareholders
Join TOPs of gambling hangout: BET2020 proposes a unique offer!
Digital Securities Guru Thomas Carter on The Two Keys That Will Unlock Mass Adoption of Cryptocurrency/Blockchain in 2020
Rovio Entertainment Corporation: Repurchase of own shares on 9 January 2020
What Does Public Domain Day Mean for Book Readers?
Rovio Entertainment Corporation: Repurchase of own shares on 10 January 2020
ZEDRA to acquire BNP Paribas Singapore Trust Corporation Limited
Buying a Home – What Should You Look After?
Follow our Tweets
Cannabis2 days ago
7 Things to Consider Before Buying Safe CBD Products
Augmented Reality (AR)4 days ago
Fluper Featured as the Best Android App Development Company By Crowd. Review
IT7 days ago
Jumei Announces Receipt of a Preliminary Non-Binding Proposal to Acquire the Company at $20.0 per ADS
Business and Management5 days ago
The Law Offices of Frank R. Cruz Announces Investigation on Behalf of The RealReal, Inc. Investors (REAL)
Guest Articles3 days ago
Robo.cash doubles funding volumes in 2019
Guest Articles3 days ago
Which Type of Furniture you should have for Elegant Look of Your Bedroom
Business and Management6 days ago
AWM Smart Shelf® Announces Partnership with OptiCrib Providing Technology for State-of-the Art Storeroom Management
IT5 days ago
MoneyGram and EbixCash Sign Exclusive Strategic Agreement to Expand Presence in India