A.M. Best Co. has upgraded the issuer credit ratings (ICR) to “bbb+” from “bbb” and affirmed the financial strength rating of B++ (Good) of Florida Family Insurance Co. and Lakeview Insurance Co. A.M. Best said the outlook for all ratings is stable. Both companies are domiciled in Bonita Springs, Fla.
The upgrading of the ICRs reflect the companies’ continued solid risk-adjusted capitalization, as well as their profitable operating performances in recent years due to their prudent underwriting criteria and sound overall risk management focus, according to the ratings firm. As a result, the companies have experienced significant surplus growth in recent years. In addition, they maintain conservative reinsurance programs that protect the companies from both potential frequent and severe catastrophe events, A.M. Best said.
These positive factors are somewhat offset by the companies’ significant dependence on reinsurance, due to their inherent exposure to weather-related events, the analysts said. However, as a result of the companies’ improved capital positions in recent periods, they have subsequently reduced their reliance on quota share reinsurance programs. In addition, the companies face potential regulatory and judicial concerns as single state property insurers in Florida.
Source: A.M. Best
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