A.M. Best Revises Outlooks to Stable for Agency Insurance Company of Maryland, Inc.
OLDWICK, N.J.--(BUSINESS WIRE)--Oct 25, 2018--A.M. Best has revised the outlooks to stable from positive and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” of Agency Insurance Company of Maryland, Inc. (AIC) (Hanover, MD).
The ratings reflect AIC’s balance sheet strength, which A.M. Best categorizes as adequate, as well as its strong operating performance, limited business profile, and appropriate enterprise risk management (ERM).
The revision in the outlooks to stable reflects the company’s steady increase in net and gross underwriting leverage ratios over the latest five-year period due to its significant premium growth, which has come from the company’s personal auto book and its entry into the commercial auto space.
AIC’s adequate balance sheet strength reflects the company’s strong overall risk-adjusted capitalization, conservative investment portfolio and favorable reserve development. However, AIC’s net and gross underwriting leverage ratios are elevated and compare unfavorably with the nonstandard auto composite. As a result, policyholder surplus and operating results are exposed to potential adverse underwriting, pricing and claims trends. The strong operating performance reflects the company’s underwriting results, which when coupled with steady net investment income, have generated consistent pre-tax operating profits. AIC maintains a limited business profile as a writer of personal and commercial automobile in three states. ERM is appropriate for AIC’s risk profile as the company continues to develop and improve its risk management capabilities in the mid-Atlantic auto market.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view .
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CONTACT: A.M. Best
Bobby Skrabal, +1 908 439 2200, ext. 5792
Joseph Burtone, +1 908 439 2200, ext. 5125
Christopher Sharkey,+1 908 439 2200, ext. 5159
Manager, Public Relations
Jim Peavy,+1 908 439 2200, ext. 5644
Director, Public Relations
KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY
INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE
SOURCE: A.M. Best
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PUB: 10/25/2018 02:51 PM/DISC: 10/25/2018 02:50 PM