OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Eastern Atlantic Insurance Company (EAIC) (Harrisburg, PA).
The revised outlooks are due to the company’s inconsistent underwriting performance in recent years, which has led to a decrease in its surplus level. However, despite this and the repayment of a surplus note in 2013, EAIC continues to maintain supportive risk-adjusted capitalization for its current business profile. EAIC's strategy is centered on strengthening its position in its existing niche market while evaluating new business segments to determine compatibility within its business model. Management has focused its expansion efforts on the independent owner-operator trucking market segment operating in the short- to intermediate-haul range of up to 600 miles from their garaging location, which has proved to be a difficult market segment.
EAIC provides commercial automobile liability, including physical damage, motor truck cargo and surety bond coverage on a direct basis. It also reinsures a builder general liability program from one of its affiliates, Western Pacific Mutual Insurance Company, A Risk Retention Group, and a home warranty program of Warranty Underwriters Insurance Company, also an affiliated home warranty company.
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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.