March 8, 2010
AM Best Revises Outlook for ASI's A- Rating
Oldwick, NJ (March 8, 2010) - A.M. Best Co. has revised the outlook to positive from stable and affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of "a-" of American Strategic Insurance Group (ASI) (St. Petersburg, FL) and its members. (See below for a detailed listing of the companies.)
The ratings reflect ASI's continued underwriting profitability and solid risk-adjusted capitalization resulting from prudent underwriting, innovative pricing systems, effective reinsurance programs and a sound overall risk management focus. As a result, significant surplus growth has occurred in recent years, complemented by continued support from the parent company. The positive outlook contemplates that operating performance and risk-adjusted capitalization will continue to trend favorably in the near and long term, as ASI begins to further diversify its geographical footprint.
These positive rating factors are somewhat offset by ASI's current geographic concentration of risk in Florida and Texas, with subsequent exposure to weather-related events and significant dependence on reinsurance. However, ASI's operating performance and capital strength have enabled it to increase retention in its quota share reinsurance programs, alleviating some concerns with dependence. In addition, the group continues to maintain conservative catastrophe reinsurance coverage.
The FSR of A- (Excellent) and ICRs of "a-" have been affirmed for American Strategic Insurance Group and its following members:
- American Strategic Insurance Corp.
- ASI Assurance Corporation
- ASI Preferred Insurance Corporation
- ASI Lloyds