AM Best Maintains Under Review With Negative Implications Status for Credit Ratings of NASW Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has maintained the under review with negative implications status for the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of NASW Insurance Company (NASWIC) (Washington, D.C.).

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

The under review with negative implications status was based on the uncertainty regarding NASWIC’s prospective business plans to operate on a stand-alone basis due to its separation from Preferra Insurance Company Risk Retention Group (Preferra RRG), which involved litigation with Preferra RRG. The litigation was settled a few months ago, enabling the parties to focus their efforts on serving the interests of their respective stakeholders.

The extension of the under review with negative implications status reflects the additional time needed for management to fully execute its plans, namely the formation of a risk retention group (RRG) that has experienced delays due to litigation and settlement processes. Management is engaged with the District of Columbia on regulatory aspects of the RRG application to ensure compliance with all applicable regulations. In addition, NASWIC’s marketing campaign to increase production through its affinity partnership with Hartford is currently underway.

The ratings for NASWIC will remain under review with negative implications until AM Best evaluates the ratings of the company on a stand-alone basis.

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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