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+” (Good) of Southern Pioneer Property and Casualty Insurance Company (Southern Pioneer) (Jonesboro, AR). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Southern Pioneer’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
Southern Pioneer’s balance sheet strength is supported by the strongest level of risk-adjusted capitalization, as measured by Best’s Credit Adequacy Ratio (BCAR) and continued stabilization of loss reserves. The company’s balance sheet strength also benefits from increased financial flexibility following its acquisition by Biglari Holdings Inc. [NYSE: BH] in 2020.
Southern Pioneer’s operating performance has stabilized following management’s decision to exit the Texas garage liability business, with the runoff nearly complete in 2021. The company’s limited business profile reflects its geographic concentration. Southern Pioneer has an appropriate ERM program that supports its risk profile.
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