AM Best Removes From Under Review With Negative Implications and Affirms Credit Ratings of American European Insurance Group Members

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has removed from under review with negative implications and affirmed the Financial Strength Rating of B- (Fair) and the Long-Term Issuer Credit Ratings of “bb-” (Fair) of Rutgers Casualty Insurance Company and American European Insurance Company, which operate an intercompany reinsurance pooling agreement, and are collectively known as AEIG or the group. Both companies are domiciled in Cherry Hill, NJ. The outlook assigned to these Credit Ratings (ratings) is negative.

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

These rating actions follow numerous actions AEIG has taken to significantly improve its capital position, as well as its operating results and enhance its governance. The negative outlooks reflect the continued pressure on AEIG’s balance sheet strength assessment as unprofitable underwiring performance has negatively impacted its capital levels in recent years, and increased exposure to catastrophes has weakened Best’s Capital Adequacy Ratio (BCAR), scores specifically at the 99.5 and 99.6 levels.

AM Best recognizes a number of capital raising initiatives in 2024 and 2025, which has improved BCAR scores at the 99.0 level. Additionally, the company has begun a number of rate and de-risking actions in its existing block of business, which over the longer term, should improve the BCAR assessment and support the overall balance sheet assessment. The group has reported improved underwriting profits due to the non-renewal of targeted business reducing overall exposure to unprofitable risks. From a governance perspective, AM Best notes that a new chief financial officer was hired in July 2025, and the Board of Directors was enhanced in August 2025. New Board members were appointed, and the structure was revised and updated from a single Audit Committee to three standing Board Committees including Governance & Compensation, Audit & Investment and Risk Management, which will ensure greater Board engagement.

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.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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