A.M. Besthas removed from under review with positive implications and upgraded the financial strength rating (FSR) to A (Excellent) from A- (Excellent) and the issuer credit rating (ICR) to “a” from “a-” of Republic Underwriters Insurance Co. (RUIC) (Dallas, Texas) and its subsidiaries and controlled affiliates (collectively referred to as Republic).
The outlook assigned to each rating is stable.
The rating upgrades follow the acquisition of the companies by AmTrust Financial Services Inc. (AmTrust) and the subsequent approval and execution of a quota share reinsurance agreement between RUIC and AmTrust International Insurance Ltd.
The rating actions also reflect the financial flexibility and other synergies and implicit benefits Republic will derive from the AmTrust enterprise. A.M. Best anticipates that the reinsurance and other expense efficiencies Republic will gain as it is integrated into AmTrust’s operations over the next 12 to 36 months will bring underwriting and operating results more in-line with those of its peers.
The FSR has been upgraded to A (Excellent) from A- (Excellent) and the ICRs upgraded to “a” from “a-” with each rating assigned a stable outlook for Republic Underwriters Insurance Co. and its following reinsured subsidiaries and affiliates:
- Republic Lloyds
- Southern Insurance Co.
- Southern County Mutual Insurance Co.
- Republic-Vanguard Insurance Co.
- Republic Fire and Casualty Insurance Co.
- Southern Underwriters Insurance Co.
Source: A.M. Best
Topics Underwriting AM Best
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