A.M. Best Co. has affirmed the financial strength rating of ‘A’ (Excellent) and the issuer credit rating of “a” of the subsidiaries of Bermuda-based American Safety Insurance Holdings, Ltd.
They are Oklahoma City based American Safety Casualty Insurance Company and American Safety Indemnity Company, Bermuda-based American Safety Reinsurance, Ltd. and American Safety Risk Retention Group, Inc. , which is based in Vermont, and is reinsured by and shares common management with the related companies. Best also affirmed the ICR of “bbb” of ASI. The outlook for all ratings is stable.
The ratings are “based on the consolidated financial condition and operating performance of the entities comprising ASI,” Best explained. The ratings also reflect the “consolidated group’s excellent capitalization, solid overall operating results and effective management of its insurance operations.” They also recognize “the group’s underwriting expertise and discipline in its niche markets with customized risk management programs and loss control services. Partially offsetting these positive factors are some variability of underwriting results in some of the group’s operating subsidiaries.”
Best described ASI’s overall capitalization as “excellent, as it was able to secure substantial capital to support its premium growth over recent years. Through secondary public offerings of stock in 2006, as well as retained earnings and trust-preferred securities placements, the group has built a solid capital base to support its underwriting, asset and credit risks. Its balance sheet strength is also stabilized by conservatively invested assets and strengthened reserves.”
Source: A.M. Best
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