OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has upgraded the Financial Strength Rating to B++ (Good) from B+ (Good) and the Long-Term Issuer Credit Rating to “bbb” from “bbb-” of Frank Winston Crum Insurance Company (FWCI) (Clearwater, FL). The outlook of these Credit Ratings (ratings) remains stable.
The ratings reflect FWCI’s balance sheet strength, which AM Best categorizes as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The rating upgrades reflect the trend of balance sheet strengthening for the company. FWCI’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), has increased materially in recent years based on solid operating returns and capital contributions from its parent company to support its growing book of business.
FWCI’s operating profitability, owing to disciplined underwriting and loss control initiatives, is demonstrated by the company’s 10-year average combined ratio of 95.8%, which compares favorably with the industry and commercial casualty composite averages. The company’s limited business profile reflects its product concentration, primarily as a guaranteed cost workers’ compensation and general liability insurance company operating in multiple states, predominately in Florida. FWCI’s ERM program benefits from a comprehensive reinsurance program and incorporates controls to manage risk concentration in its framework.
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