OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has affirmed the financial strength rating of A (Excellent) and the issuer credit rating of “a” of Sirius America Insurance Company (Sirius America) (New York, NY). The outlook for both ratings is stable.
The ratings of Sirius America reflect its enhanced risk management strategy, its strategic importance to its parent, Sirius International Group, Ltd., long-term market presence and excellent level of risk-adjusted capitalization. As a result of the organization’s global strategies, Sirius America has improved its overall performance, increased brand awareness and enhanced its capital position. However, a positive long-term trend has yet to be fully established. Recent favorable underwriting results, along with net realized capital gains, have increased overall capital for the company.
Offsetting these positive rating factors is the historical volatility in Sirius America’s overall operating performance. However, currently, Sirius America is a wholly-owned subsidiary of Sirius International Insurance Corporation (publ) (Sirius International) (Stockholm, Sweden) and benefits from accident year stop loss and capital maintenance agreements with Sirius International.
Factors that could lead to an upgrading of Sirius America’s ratings include sustained, long-term favorable operating profitability, coupled with maintenance of strong risk-adjusted capital levels. Factors that could lead to a downgrading of Sirius America’s ratings and/or a revision of the outlook to negative include unfavorable operating profitability trends, outsized catastrophe or investment losses relative to expectations and peers, significant adverse loss reserve development and/or a material decline in risk-adjusted capital.
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:
- Risk Management and the Rating Process for Insurance Companies
- Catastrophe Analysis in A.M. Best Ratings
- Understanding BCAR for Property/Casualty
- Rating Members of Insurance Groups
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
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