OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has upgraded the Financial Strength Rating (FSR) to A+ (Superior) from B+ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “aa-” from “bbb-” of Nationwide Insurance Company of Florida (NICOF). In addition, A.M. Best has upgraded the FSR to A+ (Superior) from A (Excellent) and the Long-Term ICR to “aa-” from “a” of Veterinary Pet Insurance Company (VPI). The outlook of these Credit Ratings (ratings) remains stable. Both companies are subsidiaries of Nationwide Mutual Insurance Company (Nationwide) and domiciled in Columbus, OH.
Both NICOF and VPI have long benefitted from the implicit and explicit support from their ultimate parent, Nationwide, through platforms and processes such as catastrophe reinsurance coverage, enterprise risk management and common infrastructure and distribution channels. Each company is now operating under 100% quota share reinsurance agreements with their parent companies, which are members of the Nationwide pooling agreement, thus transferring all underwriting and reserve risks to the members of the Nationwide pool.
Regarding future rating movement, if trends in underwriting performance continue to be unprofitable for the Nationwide pool in the near term, leading to notable decline in risk-adjusted capitalization, downward rating pressure may occur. Conversely, an established and continuing trend in underwriting profitability for the Nationwide pool could eventually lead to consideration of positive outlook.
This press release relates to Credit Ratings 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 see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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