AM Best Removes From Under Review With Positive Implications and Upgrades Issuer Credit Rating of Amalgamated Casualty Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has removed from under review with positive implications and upgraded the Long-Term Issuer Credit Rating to “bbb+” (Good) from “bbb” (Good) and affirmed the Financial Strength Rating of B++ (Good) of Amalgamated Casualty Insurance Company (ACIC) (headquartered in Chevy Chase, MD). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect ACIC’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 (ERM).

The Long-Term ICR upgrade reflects significant steps taken thus far by new leadership at the company to strengthen its ERM framework and expand risk management capabilities in support of its revised strategy going forward. In addition, the ratings consider the demutualization of ACIC that took effect in March 2022. As part of the demutualization transaction, ACIC is now a wholly owned subsidiary of Forge Group, Inc., a newly formed insurance holding company. Going forward, the company intends to maintain its existing livery-focused book of business and target new opportunities within the commercial auto segment in historically profitable vehicle classes across more favorable geographic locations. Commensurately, ACIC will be rebranded as Forge Insurance Company.

In support of these initiatives, the company has added significant experience to its leadership team and resources in technology and digital commerce, distribution and sales, and product development. In addition, ACIC has instituted a formal ERM committee and strengthened its ERM structure and protocols. Key risks and corresponding mitigation plans are well identified and ranked using a heat map approach. The ratings also consider the execution risk and potential challenges management may encounter in executing its plans. As is customary, AM Best will closely monitor ACIC’s results relative to the business plans to ensure any deviations remain within the scope of the current rating assessments.

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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