AM Best Revises Issuer Credit Rating Outlook to Positive for Lebanon Valley Insurance Company

OLDWICK, N.J.--()--AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of “bbb” of Lebanon Valley Insurance Company (Lebanon Valley) (Wyalusing, PA). The outlook of the FSR remains stable.

These Credit Ratings (ratings) reflect Lebanon Valley’s balance sheet strength, which AM Best categorizes as strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management (ERM).

The revision in the Long-Term ICR outlook to positive reflects improvement in underwriting and operating performance results in recent years, driven by management’s corrective actions and strict underwriting guidelines. These actions, combined with a prudent reinsurance program, have led to improved profitability from earlier years. AM Best’s expectation is for Lebanon Valley’s favorable trend in operating performance to continue while it maintains strong balance sheet strength.

Lebanon Valley’s balance sheet strength reflects the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio, and historically favorable reserve development, partially offset by its limited size and scale. The limited business profile reflects its geographically concentrated position in Pennsylvania. Lebanon Valley benefits from an appropriate ERM program that is shared with Tuscarora Wayne Companies, which supports the organization’s risk profile.

This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Steven DeLosa
Financial Analyst
+1 908 439 2200, ext. 5969
steven.delosa@ambest.com

Michelle Baurkot
Director
+1 908 439 2200, ext. 5829
michelle.baurkot@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

Contacts

Steven DeLosa
Financial Analyst
+1 908 439 2200, ext. 5969
steven.delosa@ambest.com

Michelle Baurkot
Director
+1 908 439 2200, ext. 5829
michelle.baurkot@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com