AIIC Recieves A+ From AM Best Rating Agency
A.M. Best Co. has assigned a financial strength rating of A+ [Superior] and an issuer credit rating of “aa-” to Arch Indemnity Insurance Company [AIIC] [Omaha, NE], whose ultimate parent is Arch Capital Group Ltd [Bermuda]. The outlook assigned to both ratings is stable.
A statement from the ratings agency said, “The ratings of AIIC are enhanced due to reinsurance support from an affiliate. In addition, A.M. Best expects that this entity will be managed similarly to other Arch operating companies, which have a strong history of prudent cycle management, solid capital management and a superior enterprise risk management culture.
“AIIC will focus on writing workers’ compensation business both regionally and nationally in the United States.
“Factors that could lead to a positive outlook or an upgrading of AIIC’s ratings include long-term favorable operating profitability relative to its peers and maintenance of strong risk-adjusted capital levels.
“Factors that could cause a revision in the outlook to negative or a downgrading of the ratings include unfavorable operating profitability trends, outsized underwriting losses or investment losses relative to peers, a reduction in the commitment and support from its affiliated operating companies or Arch, significant adverse loss reserve development and/or a material decline in risk-adjusted capital.”
