A.M. Best Revises Outlooks to Stable for Nations Insurance Company

OLDWICK, N.J.--()--A.M. Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb” of Nations Insurance Company (Nations) (Cerritos, CA).

The Credit Ratings (ratings) of Nations reflect its balance sheet strength, which A.M. Best categorizes as adequate, as well as its adequate operating performance, limited business profile and marginal enterprise risk management.

The revised outlook to stable from negative is based on the recent improvement of Nations’ operating performance and risk-adjusted capitalization, driven by increased underwriting earnings and investment income, which led to solid surplus growth. In addition, Nations implemented a 50% quota share reinsurance contract effective Jan. 1, 2017, which significantly reduced its net underwriting leverage. This quota share reinsurance was increased to 60% effective Jan. 1, 2018. Furthermore, Nations has implemented rate increases in recent years, which have enhanced net underwriting income, and increased investment allocation to long-term bonds from short-term investments, which has increased net investment yield and net investment income.

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 © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Kenneth Tappen, +1 908-439-2200, ext. 5248
Senior Financial Analyst
kenneth.tappen@ambest.com
or
Richard Attanasio, +1 908-439-2200, ext. 5432
Senior Director
richard.attanasio@ambest.com
or
Christopher Sharkey, +1 908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908-439-2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Kenneth Tappen, +1 908-439-2200, ext. 5248
Senior Financial Analyst
kenneth.tappen@ambest.com
or
Richard Attanasio, +1 908-439-2200, ext. 5432
Senior Director
richard.attanasio@ambest.com
or
Christopher Sharkey, +1 908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908-439-2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com