OLDWICK, N.J.--(BUSINESS WIRE)--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 Southern General Insurance Company (SGIC) (Marietta, GA).
The Credit Ratings (ratings) reflect SGIC’s balance sheet strength, which A.M. Best categorizes as adequate, as well as its weak operating performance, limited business profile and marginal enterprise risk management.
The stable outlooks reflect the improvement in operating performance resulting from underwriting initiatives implemented to improve rate adequacy. Risk-adjusted capitalization is assessed as adequate; however, leverage measures have improved in recent periods, as policyholder surplus has increased at a faster pace relative to premiums. Partially offsetting rating factors include unfavorable reserve development and SGIC’s limited scale of operations. The company’s business profile is limited due to its product offering and geographic concentration.
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.