The rating upgrades are based on the improved risk-adjusted capitalization of KICO, following a
The ratings and outlooks reflect KICO’s solid risk-adjusted capitalization, favorable five-year operating performance and local market knowledge in
KICO’s favorable operating performance is reflected in the company’s double-digit five-year pre-tax returns on revenue and equity, generated by positive net underwriting income and supplemented by net investment and other income. These five-year operating returns compare favorably with the industry composite average.
Partially offsetting KICO’s positive rating factors are its dependence on reinsurance and its concentration of risk, primarily in downstate
While KICO’s single-state concentration exposes it to weather-related events, catastrophe exposure is partially mitigated through catastrophe reinsurance, which it has purchased at increased limits in recent years, as well as the use of hurricane deductibles, visual risk inspections, distance-from-shore restrictions and surcharges. Additionally, KICO has been expanding its operating territory to regions beyond the
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.
Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170412005934/en/
Senior Financial Analyst
kenneth.tappen@ambest.com
or
Director
joseph.burtone@ambest.com
or
Manager, Public Relations
christopher.sharkey@ambest.com
or
Director, Public Relations
james.peavy@ambest.com
Source:
New Poll Shows Ohioans Overwhelmingly Support Reforms for Payday Loans
A.M. Best Removes From Under Review and Downgrades Credit Ratings of Lloyd’s Syndicate 2001; Affirms Credit Ratings of MS Amlin AG
More Articles