AM Best Upgrades Issuer Credit Rating of Frank Winston Crum Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” (Good) from “bbb” (Good) and affirmed the Financial Strength Rating of B++ (Good) of Frank Winston Crum Insurance Company (FWCI) (Clearwater, FL). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect FWCI’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).

The upgrade of the Long-Term ICR reflects FWCI’s consistent and profitable operating performance in recent years, including favorable combined and operating ratios; higher return on revenue and return on equity measures; and increased pre-tax operating and net income. The company has demonstrated sustained overall profitability and favorable comparisons with the results of peers in the workers’ compensation composite.

FWCI’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), has increased appreciably in recent years based on strong operating returns, earned premium growth and capital contributions from its parent company. 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.

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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