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OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has placed under review with negative implications the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb” of the members of Bankers Insurance Group (Bankers), which includes 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 under review with negative implications status follows AM Best’s latest review of Bankers, which reported material surplus deterioration primarily driven by a number of weather events in the second half of 2020. The erosion of capital had a negative impact on risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), creating significant pressure on the overall balance sheet assessment. In response, management has communicated near-term action plans that are expected to improve risk-adjusted capital through more robust balance sheet protection, a capital infusion and strategic exposure reduction efforts. In part, these actions involve heightened execution risk in light of challenging reinsurance market conditions. Furthermore, some company actions are pending regulatory approval.

The Credit Ratings will remain under review until these plans have been executed and AM Best evaluates the impact on overall balance sheet strength.

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 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 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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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