A.M. Best: Outlooks Revised to Positive for Benchmark Insurance

May 16, 2018

A.M. Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” of Benchmark Insurance Co. (Benchmark) in Topeka, Kansas.

The Credit Ratings (ratings) of Benchmark reflect its balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

The revised outlooks to positive from stable are based on Benchmark’s strong operating performance and increased risk-adjusted capitalization driven by steadily increasing underwriting earnings and net investment income.

Benchmark’s balance sheet strength is supported by risk-adjusted capitalization being at the strongest level, favorable loss reserving trends in recent years, a prudent investment portfolio and strong liquidity and cash flow measures.

As a result, the company’s five-year average pre-tax and total returns on revenue and equity exceed composite averages as does its five-year average combined and operating ratios. These positive rating factors generated a double-digit cumulative average growth in policyholders’ surplus over the most recent five-year period.

The strong underwriting performance is reflective of management’s conservative risk selection being limited to small and mid-sized specialty programs, primarily workers’ compensation business.

Benchmark is an independent, admitted carrier in 49 states and the District of Columbia in multiple lines of business.

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