OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has downgraded the financial strength rating to C++ (Marginal) from B- (Fair) and issuer credit rating to “b” from “bb-” of Freestone Insurance Company (Freestone) (Wilmington DE). The outlook for both ratings has been revised to negative from stable. Concurrently, A.M. Best has withdrawn the ratings due to management’s request to no longer participate in A.M. Best’s interactive rating process.
The ratings reflect Freestone’s unfavorable underwriting and operating performance driven by adverse loss reserve development in recent years, which culminated in significant deterioration in policyholder surplus and risk-adjusted capitalization in 2012 and 2013.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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