A.M. Best Co. has revised the outlook to negative from positive and affirmed the financial strength rating of B+ (Good) and issuer credit rating of “bbb-” of Gateway Insurance Co. (Gateway) in St. Louis, Mo.
The ratings reflect Gateway’s adequate risk-adjusted capitalization, favorable historical operating results on its core book of commercial auto (taxi cab/limousine) lines prior to 2009, and the financial flexibility provided by its ultimate parent, Diane M. Hendricks Enterprises Inc., which has demonstrated explicit financial and operational support for the company.
The positive rating factors are largely offset by continued concerns surrounding the company’s Florida book of commercial auto lines business, which deteriorated dramatically in 2009 and 2010, in large measure reflecting the systemic problems of fraud affecting other automobile underwriters in the state.
In addition, there are uncertainties with Gateway’s planned growth into new territories and lines of business, including its rapidly growing contractors program that specializes in workers’ compensation, general liability and commercial auto insurance for roofing contractors, and trucking program focusing on liability and physical damage coverages for small, owner-operator, long-haul trucking operations.
The revision in outlook reflects the aforementioned concerns and uncertainties, as well as the company’s continued above-average growth in highly competitive property/casualty markets.
Source: A.M. Best
Topics Trends
Was this article valuable?
Here are more articles you may enjoy.
Jury Awards $80M to 3 Former Zurich NA Employees for Wrongful Termination 
Vintage Ferrari Owners’ Favorite Mechanic Charged With Theft, Fraud 
Progressive Gains as Drivers Shop Around for Auto Insurance—Again 
Why New York’s Attorney General Objects to Trump’s Bond Insurer 
