AXA Global Risks Upgraded
The financial strength rating (FSR) of AXA Global Risks U.S. Insurance Co., New York, was raised from "B++" to "A-" by A.M. Best Co., an action which reflects the company's renewed focus following new management's restructuring initiatives and its strategic role as a member of AXA Corporate Solutions. Positive rating factors are offset by the challenges confronting AXA Global Risks U.S. as it establishes itself within its chosen markets. The rating is also applicable to the company's fully owned subsidiary, AXA Global Risks U.S. Underwriters Insurance Co.
Phoenix Indemnity Assigned 'Bpi'
A "Bpi" FSR was assigned to Phoenix Indemnity Insurance Co. by S&P. Included among rating factors was the company's membership in Millers American Group Inc. as well as Phoenix Indemnity's weak operating performance, potential interest rate risk and geographic concentration, somewhat offset by extremely strong capitalization. Writing mainly private passenger auto with a specialization in nonstandard auto, Phoenix Indemnity is based in Nebraska, domiciled in Arizona and licensed in 24 states.
Vermont Mutual Assigned 'BBBpi'
A "BBBpi" FSR was assigned to Vermont Mutual Insurance Co. by S&P. The rating also applies to the company's related reinsured pool members, Northern Security Insurance Co. and Granite Mutual Insurance Co. Key rating factors include Vermont Mutual's very strong capitalization, marginal operating performance and volatile growth in premium revenues. Vermont Mutual writes mainly homeowners and commercial multi-peril coverages. The company is licensed in 13 states and is a member of Vermont Mutual Group. The rating action does not, however, include additional credit for implied group support.
In a separate rating action, S&P affirmed the "BBBpi" FSR on Champlain Casualty Co. of Vermont, a rating action based on a reinsurance agreement the company made with Vermont Mutual Insurance. Under the terms of the agreement, Vermont Mutual assumes 100 percent of Champlain Casualty's business.
ProSelect's 'BBBpi' Affirmed
The "BBBpi" FSR on ProSelect Insurance Co. was affirmed by S&P. ProSelect is a member of the ProMutual Group Inc. insurance group, which specializes in writing liability coverage for medical professionals. S&P indicated that the rating is based on ProSelect's reinsurance agreement with its parent, Medical Professional Mutual Insurance Co., to reinsure 90 percent of ProSelect's business.
WGI Rating Affirmed
The "BBpi" FSR on Western General Insurance Co. (WGI) was affirmed by S&P, which cited the company's erratic operating performance, somewhat offset by strong capital position and adequate liquidity as the basis for the rating. Licensed in seven states, WGI primarily does business in California. It is a surplus lines writer in 11 states,
where it underwrites commercial and private auto coverages.
'BBpi' for Agency Insurance
The "BBpi" FSR on Agency Insurance Co. of Maryland Inc., a wholly owned subsidiary of Agency Holding Co. of Maryland Inc., was affirmed by S&P. Rating factors include the company's high geographic and product-line concentration, and deteriorating underwriting performance. Those factors were somewhat offset by extremely strong capitalization and adequate liquidity.
Millers Ins./Millers Cas. Downgraded
The FSR on The Millers Insurance Co. and its related pool member, The Millers Casualty Insurance Co. (TX) was lowered from "BBpi" to "Bpi" by S&P, which cited continued weak net underwriting results, a decline in surplus volatile reserve levels and a marginal S&P capital adequacy ratio as key rating factors. Millers Insurance mainly writes auto and general liability for agriculture-related businesses.
Tower Insurance Co. Upgraded
The FSR on Tower Insurance Co. was raised from "BBpi" to "BBBpi" by S&P, which indicated that the action was based on Tower Insurance Co.'s reinsurance agreement with Atlas Assurance Co. of America. The company, based in Wisconsin, is licensed in 13 states.
