Across all lines of business, insurance company downgrades seem to be grabbing headlines, yet several insurers earned an outlook of “stable” from various rating agencies this week.
After announcing lower-than-expected financials last week, State Farm’s financial strength rating was affirmed by A.M. Best’s Rating Service.
Public Service Mutual Insurance Co. and its wholly owned affiliates, Paramount Insurance Co. and Western Select Insurance Co. (collectively, Magna Carta), had its counterparty credit and financial strength ratings move to 'BBB' from 'BBB-' by Standard & Poor's Ratings Services. All firms received an outlook rating of stable.
A.M. Best has downgraded the issuer credit rating (ICR) to "bbb" from "bbb+" for Wolverine Mutual Insurance Co. In a statement, Best said the "ratings reflect Wolverine's favorable gross underwriting performance and well-established market presence in Michigan and Indiana. Offsetting these positive rating factors is the company's marginal capital position, driven by substantial surplus losses (over 20%) in 2008, above average leverage ratios and below average net operating performance in comparison to its industry composite."
A.M. Best reports that in 2009, Wolverine is re-casting its working layer reinsurance program with the goal of capturing more of these profits on a net basis.
