AM Best Upgrades Credit Ratings of ClearPath Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” (Excellent) from “a-” (Excellent) of ClearPath Insurance Company (d/b/a Clearpath Specialty and Clearpath Specialty Insurance Company) (Clearpath Specialty) (Maryland). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.

The ratings reflect Clearpath Specialty’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile, and appropriate enterprise risk management.

Clearpath Specialty’s ratings were placed under review with positive implications in March 2023, following the announcement that it had entered into a definitive merger agreement with Harford Mutual Insurance Group, Inc. (Harford Mutual).

On Aug. 15, 2023, it was announced that Harford Mutual received final approval from the Maryland Insurance Administration on the merger agreement with Clearpath Specialty, with an effective date of Aug. 4, 2023. Following the announcement, the ratings were removed from under review and an FSR of A- (Excellent) and a Long-Term ICR of “a-” (Excellent) were affirmed with positive outlooks. As part of the transaction, Clearpath Specialty converted to a stock insurance company from a mutual company. Thereafter, it became a wholly owned direct subsidiary of Harford Mutual Insurance Company effective November 13, 2023, and via a 100% quota share reinsurance agreement effective January 1, 2024. The rating upgrades and the revised outlooks for Clearpath Specialty reflect its integration as a newly added reinsured member of Harford Mutual Insurance Group.

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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