OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the financial strength rating (FSR) of B++ (Good) and the issuer credit rating (ICR) of “bbb+” of Club Insurance Company (Club) (Worthington, OH). The outlook for both ratings is stable. Concurrently, A.M. Best has withdrawn the ratings as the company has requested to no longer participate in A.M. Best’s interactive rating process.
The final ratings reflect Club’s low underwriting leverage that drives its adequate level of risk-adjusted capitalization and consistently favorable operating performance. Club’s profitable underwriting results over the past several years were derived from favorable loss ratios on its core accident and health line of business. Club’s capital position further benefits from its diversified investment portfolio and above average liquidity ratios that exceed the accident & health composite average.
Partially offsetting these rating factors are Club’s business concentration in Ohio and reliance on personal accident insurance products, which are exposed to membership fluctuations of The Ohio Automobile Club, an affiliate of the American Automobile Association, Inc., and regulatory risks. Also, the company maintains an expense disadvantage as reflected by its elevated expense ratio driven by above average commission costs and non-commissioned expenses.
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.
Key insurance criteria reports utilized:
• Rating Run-Off Insurers and Specialists
• Risk Management and the Rating Process for Insurance Companies
• Evaluating Non-Insurance Ultimate Parents
• Understanding BCAR for Property/Casualty Insurers
This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.
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