AM Best Revises Outlooks to Negative for American Capital Assurance Corp

OLDWICK, N.J.--(BUSINESS WIRE)--AM 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 American Capital Assurance Corp (ACAC) (St. Petersburg, FL).

The negative outlooks reflect AM Best’s concerns with the recent decline in operating performance, stemming from an increase in weather-related losses.

The Credit Ratings (ratings) reflect ACAC’s balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management. The ratings consider ACAC’s strongest level of risk-adjusted capitalization, consistently redundant reserving practices, comprehensive catastrophe reinsurance program, and historically favorable return measures. Offsetting these positive rating factors is a weather and catastrophe-exposed book of business that can lead to volatility in underwriting results, as evidenced over the past two years. Management is well-seasoned and experienced in this niche and is implementing measures in an effort to return to operating profitability.

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.

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