-AM Best raises Stonetrust Commercial Insurance's ratings.
BANKING AND CREDIT NEWS-June 6, 2011--AM Best raises Stonetrust Commercial Insurance's ratings(C)2011 M2 COMMUNICATIONS http://www.m2.com
6 June 2011 -- AM Best lifted on Friday to B++ (good) from B+ (good) the financial strength rating (FSR) and to "bbb" from "bbb-" the issuer credit rating (ICR) of US Stonetrust Commercial Insurance Co.
The higher ratings are underpinned by the company's strong capitalisation, profitable earnings benefiting from its steady underwriting performance and consistent investment income, the agency said.
The ratings further evaluate the management's underwriting track record within its niche workers' compensation marketplace, AM Best added.
These positive factors are somewhat offset by the areas of adverse reserve development in Stonetrust's previous accident years, its concentrated market profile operating as a monoline insurer writing mainly in a single state and the execution risk stemming from premium growth in neighbouring states while maintaining pricing adequacy.
Nevertheless, the outlook reflects the rebound in the company's capitalisation and the analysts' projections that the company will keep its operating performance at a strong level on a short-term scenario, contributing to organic surplus growth.
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|Publication:||M2 Banking & Credit News (BCN)|
|Date:||Jun 6, 2011|
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