OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb” of National Fire and Indemnity Exchange (NFIE) (St. Louis, MO). The outlook of the Credit Ratings (ratings) has been revised to negative from stable. Concurrently, AM Best has withdrawn the ratings as the company has requested to no longer participate in AM Best’s interactive rating process.
The ratings reflect NFIE’s balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.
The negative outlooks reflect the deterioration in balance sheet strength, as reflected in a policyholder surplus decline and increased underwriting leverage measures through Dec. 31, 2020. In addition, further losses are expected in the first quarter of 2021 due to the Texas freeze in February.
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