A.M. Best Co. has downgraded the financial strength rating to B (Fair) from B++ (Very Good) of Safeway Property Insurance Company (Gainesville, Fla.). The outlook is negative.
The rating downgrade recognizes the company’s reduced capitalization as a result of its ultimate net exposure from Hurricane Charley. As a result of expected losses, Safeway Property’s capitalization declined by approximately 25 percent. In addition, A.M. Best remains concerned with the company’s significant premium growth in recent years and the elevated catastrophe exposure in the hurricane-prone Florida market.
While operating performance has historically been favorable, the rating outlook is negative based on the company’s fair capitalization and the continued high gross catastrophe exposure.
Was this article valuable?
Here are more articles you may enjoy.
Stryker Remains Offline After Cyberattack Linked to Iran Group 
Insurify’s Founders Discuss Evolution of Insurance Shopping With AI 
Chubb to Serve as Lead US Insurer for Gulf Shipping Amid Iran War 
Prices for New Cars Have Soared. Here’s One Big Reason Why 
