OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a financial strength rating of A- (Excellent) and an issuer credit rating of “a-” to St. Charles Insurance Company Risk Retention Group (St. Charles) (Columbia, SC). The outlook assigned to both ratings is stable.
The ratings reflect St. Charles’ excellent risk-adjusted capitalization, historically profitable operating results and defined mission of providing contractual liability insurance coverage for service contracts issued by insured auto dealerships. Partially offsetting these strengths is the company’s exposure to risk concentration, as it only sells automobile-related financial products. Risk-adjusted capitalization is expected to remain excellent, supported by good internal capital generation.
Following the assignment of the current ratings, positive rating actions are unlikely. Although not expected, negative rating actions may occur if St. Charles produces poor operating results over a prolonged period. A material weakening in the company’s risk-adjusted capitalization or deterioration in its liquidity profile would also put negative pressure on the ratings.
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:
- Alternative Risk Transfer
- Evaluating Non-Insurance Ultimate Parents
- Risk Management and the Rating Process for Insurance Companies
- 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.
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
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