OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating to “a” from “a-” of Repwest Insurance Company (Repwest) (Phoenix, AZ). The outlook of these Credit Ratings (ratings) has been revised to stable from positive. Repwest is a wholly owned subsidiary of AMERCO [NASDAQ: UHAL], a publicly traded holding company that is also the parent of U-Haul International, Inc. (U-Haul).
These ratings reflect Repwest’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 rating upgrades reflect continued stabilization of loss reserve development on the company’s legacy excess workers’ compensation business, as well as the company’s consistently favorable surplus generation. Organic capital growth has reflected the company’s improved underwriting performance and solid net investment income generated by a portfolio of long-term bonds, equity, mortgages and real estate investments. The company has steadily increased net underwriting income since refocusing on its core business, and has generated solid combined ratios that have consistently outperformed the industry benchmark. Repwest’s growth benefits from U-Haul’s position as a market leader and continued expansion in the self-storage and self-moving space, where it offers a variety of products and services.
The stable outlook reflects AM Best’s expectation that the company’s risk-adjusted capitalization will continue to approximate current levels and that it will sustain its consistently strong operating performance.
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.
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