A.M. Best Downgrades AmTrust As Insurer Prepares to Go Private

July 5, 2018

  • July 5, 2018 at 7:13 am
    PolarBeaRepeal says:
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    First, typos:
    Par. 4: “…primarily related the sale…”
    Par. 6: “…financing of needed…”

    I’ll finish reading the article later, and may comment on the… content. :)

  • July 5, 2018 at 9:55 am
    Dave Carterwoood says:
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    Wow. The “wizards of oldwick” suddenly discover the existence of the ACP Re life settlement book. Way to be on the ball boys!

  • July 5, 2018 at 10:06 am
    sal baker says:
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    Very nice of Amtrust to maintain their A rated status. Am Best living dangerously with this one potentially?

    • July 5, 2018 at 2:53 pm
      Agent says:
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      Afraid I don’t trust Best much since they gave an A rating to AIG just prior to the bailout.

      • July 6, 2018 at 10:56 am
        Rosenblatt says:
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        I agree … what other company/companies do you check out, then?

        • July 7, 2018 at 11:11 am
          PolarBeaRepeal says:
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          I’m not sure why that is relevant to this discussion. You could assume he is interested in the carriers he services…. but why would he identify them on a message board? Are you trying to instigate an adversarial relationship or discover his identity?

          • July 9, 2018 at 11:00 am
            Agent says:
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            Polar, a smart agent always checks financial status of the carriers he uses to write business. Never, ever use a B or below rated carrier or you are asking for trouble.

          • July 10, 2018 at 8:29 am
            Rosenblatt says:
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            Reading comprehension buddy. I didn’t ask Agent to list the companies he’s doing business with, I asked him to explain what alternative rating company he uses since he doesn’t trust AM Best. He can say JD Power, Standard & Poor, etc.

  • July 6, 2018 at 4:49 pm
    PolarBeaRepeal says:
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    The concerns I have after reading all of the details; the immature ERM process, their financial foundation is based on reinsurance with an affiliated reinsurer, and their inability to perform the necessary rehabilitative work on the entities they recently bought.

    In regard to the third item, I wonder if they thought they could rehabilitate their acquisitions, but realized there were more problems than their analysis / due diligence indicated? I wonder if regulators are ok with their balance sheet now after the revelation of their reserve deficiencies, the increased scrutiny by the reserve certification actuaries, and the corrective actions taken?

    • July 9, 2018 at 3:06 pm
      Agent says:
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      Polar, I think they have had a few issues trying to rehabilitate Republic. AmTrust was not a personal lines carrier and they acquired Republic to write some Personal Lines. It has been quite a process marrying the lines, setting up claims. Republic had some issues and was acquired at bargain basement prices for the volume they had. Hoping they get their act together.

    • July 11, 2018 at 4:41 pm
      Agent says:
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      Hey Rosenblatt, ever try Googling for information on carriers? Hey, it works like a charm and you can find out all you need to know by clicking of relevant information.

      • July 11, 2018 at 4:47 pm
        Rosenblatt says:
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        Uh huh, but googling carriers doesn’t give you financial projections on stability like AM Best provides. Which leads me right back to where we started:

        You: “Afraid I don’t trust Best much since they gave an A rating to AIG just prior to the bailout.”

        Me: Is there a company which provides similar information on carriers that AM Best provides that you do trust?

        • July 16, 2018 at 12:01 pm
          Agent says:
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          Best is untrustworthy as I have said. Keep trusting them Rosenblatt, be my guest.

  • July 9, 2018 at 12:01 pm
    Outsider says:
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    I think the whole privatization is to save their rating from going to a B++ potentially. It is much easier to hide reserve deficiencies as they right their ship with the help of their sister companies, if they do not have that pesky Sarbanes Oxley act requirement that they be honest. I think this is a survivable company since they have pretty good diversification, but the California comp market, plus stupid acquisitions almost brought them to their knees. Hopefully they can get it right and become a stable insurance company. I do not they are trying. Sometimes very.

  • July 30, 2018 at 3:11 pm
    Walks like a Duck says:
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    They write mostly auto and WC, with projected negative reserve development. What could go wrong?



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