A.M. Best has revised the outlook from stable to negative for the long-term issuer credit rating and affirmed the financial strength rating (FSR) of A (Excellent) and long-term of “a+” of British American Insurance Company (BAIC), which is based in Dallas, Texas.
BAIC, which is licensed in Texas and writes all of its direct business there, is a single-parent captive of Austin Industries, a construction company in the US.
Coverages provided to Austin Industries and its affiliates include workers' compensation, general liability, commercial automobile and surety.
A.M Best believe this relationship gives BAIC ready access to business derived from its parent, which is focused principally in Texas and across the Southern US.
The assigned credit ratings reflect BAIC’s balance sheet strength, which A.M. Best categorises as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
A.M. Best explained that the outlook of the long-term was revised to negative from stable due to BAI’s deteriorating operating performance, as reflected in high combined ratios during the past two years.
The management believes these to be anomalies and has added resources to the claims and reserves review process, and the outlook for the FSR remains stable.
