The assignment of the stable outlooks reflects A.M. Best’s view that the companies’ operating performance will remain profitable, and risk-adjusted capitalization will continue to be supportive of its risk profile.
The rating affirmations reflect the companies’ solid risk-adjusted capitalization, adequate operating performance, niche surety market focus and the advantages gained from management’s experience in the surety marketplace. These rating factors are offset by operating losses posted in 2011 and 2012 and adverse loss reserve development in recent calendar years from 2010 to 2015, driven by the emergence of claims stemming from the companies’ subdivision surety bonds that, in A.M. Best’s opinion, reflect the companies’ outsized risk appetite.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. 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.
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Senior Financial Analyst
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Director, Public Relations