OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has revised the outlook to positive from stable and affirmed the financial strength rating of B++ (Good) and the issuer credit rating of “bbb+” of Triangle Insurance Company, Inc. (Triangle) (Enid, OK).
The rating actions reflect Triangle's excellent risk-adjusted capitalization achieved through significantly improved operating profitability, which is reflective of management's strong niche market knowledge within the agribusiness industry, as well as capital contributions received from its parent company, Triangle Cooperative Service Company Inc. In addition, Triangle's average underwriting performance has outperformed that of the commercial casualty composite as evidenced by its five and 10-year combined ratios, which compare favorably with the composite.
Partially offsetting these positive rating factors are Triangle's ongoing vulnerability to natural and man-made catastrophe losses, which somewhat exposes its underwriting results to the potential for increased volatility in operating performance as well as its average operating results that underperformed the composite average when viewed over the long term. Despite these concerns, the outlook reflects the company’s improved underwriting and operating performance in recent years, excellent risk-adjusted capitalization and strong local presence within the agribusiness market.
Positive rating actions could be taken on Triangle’s ratings over the near term if underwriting and operating results remain strong and in line with projections, while a strong level of risk-adjusted capitalization is maintained.
Key factors that could trigger negative actions on Triangle's ratings include a downturn in operating profitability due to a weakening in underwriting performance and/or an increase in catastrophe-related losses, which weakens overall risk-adjusted 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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