A.M. Best Co. upgraded the financial strength rating to A- (Excellent) from B++ (Good) and issuer credit rating to “a-” from “bbb+” of American Freedom Insurance Company of Arlington Heights, Ill. The outlook for both ratings has been revised to stable from positive.
Best said American Freedom has maintained excellent risk-adjusted capitalization, conservative underwriting leverage and favorable loss reserve development. The company’s continued operating profitability has benefited from favorable loss experience. According to Best, management’s prudent underwriting, despite the highly competitive nonstandard automobile market, has contributed to the company’s positive performance.
American Freedom has a limited business profile, which offsets its strengths, Best said. Due to its product and geographic concentration, the company remains susceptible to adverse changes in the judicial and legislative environment, as well as increased competition, which impacted premium growth prior to 2009.
Source: A.M. Best, www.ambest.com/ratings.
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