AM Best revises outlook to positive for IAT Re and most operating subsidiaries

AM Best, the credit rating agency, has revised the outlook for IAT Reinsurance Company Ltd. (IAT Re) (Cayman Islands) to positive from stable.

The Financial Strength Rating (FSR) of A- (Excellent) and Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) have been affirmed for the firm.

Concurrently, AM Best has revised the outlooks to positive from stable and affirmed the FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) of the members of Harco National Group (Harco) (Raleigh. NC).

The members of the revised ratings are: Acceptance Casualty Insurance Company, Acceptance Indemnity Insurance Company, Commercial Alliance Insurance Company, Harco National Insurance Company, International Fidelity Insurance Company, Occidental Fire and Casualty Company of North Carolina, TransGuard Insurance Company of America, Inc., and Wilshire Insurance Company.

Additionally, the rating agency has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Allegheny Casualty Company (ACC) (Newark, NJ), with a stable outlook.

AM Best explained that the revisions of the outlooks to positive for IAT Re and Harco are due to the expectation that the groups will continue to generate positive earnings. This is expected to contribute to organic surplus growth, improved risk-adjusted capitalisation, and a continued trend of enhanced qualitative balance sheet metrics over the intermediate term.

The ratings reflect IAT Re’s balance sheet strength, which has been assessed as very strong according to Best’s Capital Adequacy Ratio (BCAR). This assessment reflects the strongest level of risk-adjusted capitalisation, a strengthening reserve position, and a high-quality investment portfolio.

AM Best stated, “IAT Re’s enhanced reserve profile has led to improved development and less volatility around the BCAR, which has improved our overall view of the balance sheet assessment. IAT Re’s operating performance has produced profitable results in recent years despite economic challenges and historic catastrophe events.”

IAT Re is a Cayman Islands-domiciled reinsurer providing excess of loss and other reinsurance to primary insurance companies, a significant portion of its premiums are assumed from its US subsidiaries through quota share reinsurance agreements.

Through these agreements, IAT Re provides capacity for the various lines of business generated by its insurance subsidiaries, which include a variety of business segments. The firm also has diverse distribution channels as business is marketed primarily through independent agencies, wholesale agents and brokers.

AM Best stated that the change in Harco’s rating reflects its “very strong” balance sheet strength, adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

Finally, ACC’s ratings also reflect its “very strong” balance sheet strength, adequate operating performance, limited business profile and appropriate ERM, explained AM Best.

This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.