A.M. Best Revises Outlook of Issuer Credit Rating to Positive for First Guard Insurance Company
OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has revised the outlook to positive from stable and affirmed the issuer credit rating (ICR) of “a” for First Guard Insurance Company (First Guard) (headquartered in Venice, FL). A.M. Best has also affirmed First Guard’s financial strength rating (FSR) of A (Excellent). The outlook for the FSR is stable.
The outlook revision to positive reflects A.M. Best’s view that First Guard’s strong risk-adjusted capitalization, supported by low underwriting and investment leverage, consistently strong underwriting performance and conservative underwriting discipline, will continue, and if so, positive rating action will likely occur in the medium term. The ratings also reflect the company’s expertise in the trucking physical damage market segment, targeting leased owner-operators. Partially offsetting these positive rating factors are First Guard’s narrow product focus within the commercial automobile line of business and below average investment yields.
Factors that may lead to positive rating actions include a continued trend of above average underwriting and operating profitability, while maintaining strong risk-adjusted capitalization. Factors that could lead to negative rating actions include a sustained weakening in operating earnings due to deterioration in underwriting performance and/or material weakening in overall capitalization.
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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