A.M. Best Upgrades Ratings of Shelter Reinsurance Company

OLDWICK, N.J.--()--A.M. Best Co. has upgraded the financial strength rating (FSR) to A (Excellent) from A- (Excellent) and issuer credit rating (ICR) to “a” from “a-” of Shelter Reinsurance Company (Shelter Re).

A.M. Best also has affirmed the FSR of A (Excellent) and ICR of “a+” of Shelter Insurance Companies (group) and its members. Additionally, A.M. Best has affirmed the FSR of A (Excellent) and ICR of “a” of Haulers Insurance Company, Inc. (Haulers) (Columbia, TN).

Concurrently, A.M. Best has affirmed the FSR of A (Excellent) and ICR of “a” of Shelter Life Insurance Company (Shelter Life), a wholly owned subsidiary of Shelter Mutual Insurance Company (Shelter Mutual). The outlook for all ratings is stable. All companies are domiciled in Columbia, MO, unless otherwise specified. (See below for a detailed list of companies.)

Shelter Re’s rating upgrades are based on its improved capitalization and favorable operating performance. Shelter Re provides a unique diversification strategy that compliments its parent, Shelter Mutual’s core personal lines book of business through reinsurance. As a member of the Shelter group of companies, Shelter Re has access to extensive personal lines experience including claims, underwriting and legal expertise. Shelter Re has been successful in the domestic marketplace in recent years leveraging the mutual to mutual approach.

The rating upgrades further recognize the explicit and implicit support provided by Shelter Mutual as reflected in its strong risk-adjusted capitalization, technology innovation and experienced management team. Partial offsets include Shelter Re’s exposure to catastrophic events worldwide, severe weather-related losses and global competition from larger, more established players.

The group’s affirmations are reflective of its moderate underwriting leverage, management's conservative reserving philosophy, well established regional market presence and consistent net investment income. A partially offsetting factor is the group’s variable operating performance mainly due to its inherent exposure to frequent and severe weather-related events.

Haulers’ ratings acknowledge its solid risk-adjusted capitalization, favorable operating performance and conservative underwriting leverage measures.

The ratings of Shelter Life reflect its role as a strategic subsidiary of Shelter Mutual, its strong risk-adjusted capitalization, consistently positive operating performance and its focus on the highly creditworthy ordinary life line of business distributed through captive agents.

Offsetting these rating factors is the geographic concentration of Shelter Life’s in force business and its limited market profile.

The FSR of A (Excellent) and ICRs of “a+” have been affirmed for Shelter Insurance Companies and its following members:

  • Shelter Mutual Insurance Company
  • Shelter General Insurance Company

For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

Contacts

A.M. Best Co.
Analysts:
Maurice Thomas, 908-439-2200, ext 5794
maurice.thomas@ambest.com
Joseph Burtone, 908-439-2200, ext 5125
joseph.burtone@ambest.com
or
Public Relations:
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com

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Contacts

A.M. Best Co.
Analysts:
Maurice Thomas, 908-439-2200, ext 5794
maurice.thomas@ambest.com
Joseph Burtone, 908-439-2200, ext 5125
joseph.burtone@ambest.com
or
Public Relations:
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com