AM Best Revises Issuer Credit Rating Outlook to Positive for Centennial Casualty Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Centennial Casualty Company (Centennial) (Birmingham, AL). The outlook of the FSR is stable.

These Credit Ratings (ratings) reflect Centennial’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

The positive outlook on the Long-Term ICR reflects the continued strengthening of Centennial’s balance sheet through strong operating results. The company’s surplus growth has been solid, despite annual shareholder dividend payments. Centennial maintains the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). Lastly, underwriting leverage metrics are low and compare favorably with the credit peer composite average.

Positive rating actions could occur for Centennial with strengthening of its balance sheet through favorable operating performance and consistently favorable loss development, while maintaining the strongest level of risk-adjusted capitalization. Negative rating actions may arise if the company’s operating performance is not maintained at a strong level through the underwriting cycle or if the company experiences a significant deterioration in risk-adjusted capitalization.

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.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.