OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa+” of the members of The Hartford Steam Boiler Group (HSB). The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the companies.)
The ratings recognize HSB’s superior level of risk-adjusted capitalization, consistently favorable earnings and unique market profile. HSB is a leading provider of equipment breakdown (boiler and machinery), specialty engineering insurance and equipment inspection services, and it continues to maintain this position with superior loss control capabilities, technical expertise and a unique equipment failures database.
The rating affirmations also reflect the group’s synergies with Munich Reinsurance America, Inc. and its ultimate parent, Munich Reinsurance Company (Munich Re). HSB’s relationship with Munich Re has provided access to new markets. Furthermore, HSB’s robust enterprise risk management (ERM) practices receive additional benefits from Munich Re’s extensive ERM resources.
HSB management has been very successful in managing through underwriting cycles, and has the expertise and resources required to take advantage of existing and new underwriting opportunities. HSB Group’s product expansion and enhancement efforts beyond its core business line include homeowners and farmowners equipment breakdown coverage; employment practices liability; identity recovery, data compromise and cyber liability coverages; and insurance for renewable energy facilities.
A.M. Best believes that the members of HSB Group are well-positioned at the current rating level. However, positive rating actions could occur if there were upward rating movement at the ultimate parent level. Factors that may lead to negative rating actions include a sustained, material deterioration in operating performance or substantial deterioration in risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio (BCAR).
The FSR of A++ (Superior) and the Long-Term ICRs of “aa+” have been affirmed for the following members of The Hartford Steam Boiler Group:
- The Hartford Steam Boiler Inspection and Insurance Company
- The Hartford Steam Boiler Inspection and Insurance Company of Connecticut
- The Boiler Inspection and Insurance Company of Canada
- HSB Specialty Insurance Company
- HSB Engineering Insurance Limited
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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