Oldwick, NJ -(BusinessWire)- AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Amerisure Mutual Insurance Company, Amerisure Insurance Company and Amerisure Partners Insurance Company, all of which operate through an intercompany pooling agreement and are collectively referred to as Amerisure Companies. All companies are domiciled in Farmington Hills, MI.
The Credit Ratings (ratings) reflect Amerisure Companies’ balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The outlook revision to stable reflects corrective actions taken by the group to improve operating performance and balance sheet strength in recent years. These actions include rate increases, refined risk selection, reserve strengthening and more-focused agency management strategies that are all driven toward improving profitability. Furthermore, the impact of adverse reserve development from legacy construction defect has been eliminated following the execution of an adverse development cover/loss portfolio transfer in 2019. Given the execution of these risk mitigation efforts, AM Best expects that prospective operating performance will remain adequate.
Amerisure Companies’ balance sheet is supported by the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and a high quality investment portfolio that has historically driven pre-tax earnings. The neutral business profile assessment reflects the spread of risk across workers’ compensation and other commercial lines, although Florida, Texas, Georgia and Michigan together comprise approximately half of the group’s premium volume. AM Best views Amerisure Companies’ ERM as appropriate for the scale, scope and complexity of the organization.
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