AM Best withdraws credit ratings from Wisconsin Reinsurance Group members

0

OLDWICK, NJ–(BUSINESS WIRE)–AM Best affirmed the financial strength rating of B+ (good) and the long-term issuer credit rating of “bbb-” (good) of Wisconsin Reinsurance Corporation and 1st Auto & Casualty Insurance Company (1st Auto), collectively called Wisconsin Reinsurance Group (WRG) (Madison, Wisconsin). The outlook for these credit ratings (ratings) is negative. Concurrently, AM Best withdrew the ratings as the company requested to no longer participate in AM Best’s interactive ratings process.

The ratings reflect the strength of WRG’s balance sheet, which AM Best assesses as strong, as well as its marginal operating performance, limited business profile and appropriate management of business risks.

The negative rating outlook reflects AM Best’s concerns about the effectiveness of WRG’s exposure management initiatives given the recent trend in underwriting losses, which negatively impacted risk-adjusted capitalization. Due to the group’s inability to stabilize earnings, as evidenced by reported declines in surpluses in four of the past five years, risk management capabilities have been called into question.

This press release relates to credit ratings that have been published on AM Best’s website. For all rating information relating to the release and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Assessment Activity Web page. For more information on the use and limits of the credit score notice, please consult Best Credit Score Guide. For more information on the proper use of Best’s Credit Ratings, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see Guide to Proper Use of Best’s Ratings and Reviews.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Share.

Comments are closed.