A.M. Best Co. has upgraded the issuer credit rating (ICR) to “bbb+” from “bbb” and affirmed the financial strength rating of B++ (Good) of Club Insurance Co. (Club) in Worthington, Ohio. The outlook for all ratings is stable.
The ratings of Club reflect its low underwriting leverage and trend of positive operating performance. The company has reported consistently profitable underwriting results over several years that have been derived primarily from its favorable loss experience in its core accident and health line of business.
The upgrade further reflects A.M. Best’s expectation that Club will continue to produce favorable operating trends while maintaining a solid level of risk-adjusted capitalization.
These positive rating factors are partially offset by the company’s business concentration in Ohio and reliance on personal accident and health insurance that is distributed exclusively to its membership through The Ohio Automobile Club, its parent company. I
In addition, business development is highly influenced by fluctuations in the Ohio Automobile Club membership.
Key factors that could lead to negative rating action include unexpected deterioration in underwriting and operating results with significant erosion of risk-adjusted capitalization.
Source: A.M. Best
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