American Safety Risk Retention Group (RRG) has requested to withdraw from A.M. Best’s interactive rating process.
Before the ratings were withdrawn, A.M. Best affirmed the financial strength rating of “B+ (Good)” and long-term issuer credit rating of “bbb-“ of American Safety RRG.
According to A.M. Best, the ratings reflect American Safety RRG’s balance sheet strength as well as its marginal operating performance, very limited business profile and appropriate enterprise risk management.
The ratings agency suggested that although loss experience in the company’s specialised niche has been generally favourable, the expense ratio is “highly elevated despite cost reduction initiatives”.
It explained that American Safety RRG has limited premium growth, as management was “not successful in executing the business plan to build its core book of business” and as a consequence is in run-off status.