The Republic Group (Republic) announced A.M. Best Company has affirmed the rating of “A-” (Excellent) for each of the group’s companies. In addition to affirming the group’s current financial strength, A. M. Best assessed its outlook as “stable.”
The rating and outlook reflect the group’s adequate capitalization, sustained operating profitability, long-standing regional market presence, consistent reserve strength, conservative investment portfolio and the financial flexibility offered by its global parent.
The group’s risk-adjusted capitalization has improved in recent years due to a re-focusing of its operating strategy as a regional writer targeting niche opportunities through its network of long-standing agents and managing general agent partners.
In addition, the group’s investments have been realigned in recent years to a conservative, predominantly fixed income security portfolio, which has contributed positively to the increased surplus position.
The group further improved its surplus following the December 2006 acquisition by Delek Capital, Ltd. with additional capital to support growth initiatives. The result has translated into strong surplus appreciation over the past five years.
A.M. Best noted that the group’s conservative reinsurance program, disciplined underwriting and expanding footprint help mitigate its exposure to weather – related events and regional concentration of risk. The sound underlying performance of the group’s book of business is reflected in its five year average pure loss ratio, which is well below the industry composite.
Source: The Republic Group, www.RepublicGroup.com
Topics AM Best
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