A.M. Best has downgraded the American Safety Risk Retention Group (ASRRG), but also revised its outlook upwards to ‘stable’.
ASRRG’s financial strength rating was dropped to ‘B+ Good’ from ‘B++ Good’, while its long-term issuer credit rating went from bbb’ to ‘bbb-’.
The downgrades are a result of a weak operating performance, declining surplus levels, limited business profile and management’s difficulty in successfully executing a business plan for its core business, according to A.M. Best.
The US ratings agency added that these factors were partially offsetting favorable risk-adjusted capitalisation, as well as a commitment by ASRRG’s management to provide insurance solutions to its members and policyholders who remain loyal to the program, which is shown in its high retention levels.
