A.M. Best News

Low Interest Rates Challenge European Insurers: A.M. Best Report

The low interest rate environment represents a significant challenge for insurers, according to a report published by A.M. Best. “European insurers are struggling to generate investment income as the majority of their invested assets are held in high-quality fixed-income securities,” …

A.M. Best: European Insurers Tap Capital Markets Ahead of Solvency II

Low interest rates together with highly liquid and stable financial markets have prompted European insurers to tap the capital markets in their efforts to lower the cost of capital and optimize levels of risk-adjusted capitalization, according to a new report …

Ratings of Ohio’s Buckeye State Mutual Downgraded

A.M. Best has downgraded the financial strength rating to B (Fair) from B+ (Good) and the issuer credit ratings to “bb+” from “bbb-” of Buckeye State Mutual Insurance Co. (Buckeye) of Piqua, Ohio, and its insurance affiliate: Home and Farm Insurance Co. in Fort …

A.M. Best: London Market Insurers Face Challenges; Balance Sheets Strong

Trading conditions are difficult in the London market as insurers contend with changing buying habits, an influx of alternative capital and global economic uncertainty, according to a special report published by A.M. Best. The availability of alternative capital in the …

A.M. Best: Nigeria Insurance Sector Offers Significant Potential for Investors

Although fluctuating oil prices threaten Nigeria’s economic expansion, the country’s insurance sector offers significant potential for foreign investors attempting to build a profile in the market, according to A.M. Best in a special report. In the new report entitled “Nigeria’s Insurance …

A.M. Best Assigns Ratings to Coverys Specialty in New Jersey

A.M. Best has assigned a financial strength rating of A (Excellent) and an issuer credit rating of “a” to Coverys Specialty Insurance Company. The outlook assigned to both ratings is stable. Coverys Specialty Insurance Company is a New Jersey-domiciled excess …

A.M. Best: Middle Eastern Insurance Market Primed for M&As, Stakebuilding

Merger and acquisition (M&A) activity and stakebuilding is gaining momentum in the Middle East as financially strong and profitable insurers seek to deploy surplus capital to broaden their profiles and satisfy shareholders’ expectations, according to a briefing issued by A.M. …

Outlooks for American Agricultural Insurance Positive

A.M. Best has revised the outlooks to positive from stable and affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of American Agricultural Insurance Co. (AAIC) of Indianapolis, Ind. The revision of the outlooks to positive reflects …

Best Sees Insurance Opportunities with Increasing Commercial Drone Use

A.M. Best’s analysis of the growth in the use of drone aircraft concludes that the “commercial use of drones presents exciting possibilities to a number of industries, but as with any new technology, unique and unanticipated risks arise. “Drones represent …

A.M. Best: Australia’s Nat Cat Losses Will Challenge Underwriting Profits

A string of recent major natural catastrophe events in Australia is expected to materially affect non-life insurers’ upcoming earnings for the fiscal year that ends June 30, 2015, according to an A.M. Best briefing. However, the Best’s Briefing, titled, “Recent Natural Catastrophe …