The Republic Group’s Ratings Affirmed

Dallas-based regional property/casualty insurer The Republic Group (Republic) announced that 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 solid capitalization, adequate operating profitability, longstanding regional market presence, conservative investment portfolio and the financial flexibility offered by its global parent.

The group’s risk-adjusted capitalization is favorable due to management’s 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 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, diversified product offering and expanding footprint help mitigate its exposure to weather-related events and regional concentration of risk. Additionally, A.M. Best noted that the group’s elevated underwriting expenses have helped the group’s underlying book of business generate favorable results as reflected in its five year average pure loss ratio, which is significantly lower than the personal lines industry composite.

Source: The Republic Group