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Press release content from Business Wire. The AP news staff was not involved in its creation.

AM Best Downgrades Issuer Credit Rating of British American Insurance Company

November 10, 2021 GMT

OLDWICK, N.J.--(BUSINESS WIRE)--Nov 10, 2021--

AM Best has downgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” (Excellent) from “a+” (Excellent) and affirmed the Financial Strength Rating (FSR) of A (Excellent) of British American Insurance Company (BAIC) (Dallas, TX). The outlook of the Long-Term ICR has been revised to stable from negative while the outlook of the FSR is stable.

The Credit Ratings (ratings) reflect BAIC’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The downgrade of the Long-Term ICR is a result of volatile operating performance in recent years and unfavorable combined ratios in 2017-2018 and again in 2020. Management believes these results to be anomalies and has added resources to the claims and reserves review process.

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The Long-Term ICR outlook revision to stable is due to measures taken by BAIC to stabilize its operating performance, including the implementation of frequent actuarial reviews and other risk management measures.

BAIC is a single parent captive of Austin Industries, Inc., one of the largest construction companies in the United States. This relationship gives BAIC ready access to business derived from its parent, which is focused principally in Texas and across the Southern United States. BAIC is licensed in Texas and writes all of its direct business there. The company also utilizes fronting carriers for those business activities conducted outside Texas.

Coverages provided to Austin Industries, Inc. and its affiliates include workers’ compensation, general liability, commercial automobile and surety.

Excess of loss reinsurance above a self-insured retention is maintained for all lines of business. The company benefits from a solid management team with significant depth of experience in the insurance and construction industries who are employed by Austin Industries, Inc.

AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

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This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20211110006357/en/

CONTACT: Fred Eslami

Associate Director

+1 908 439 2200, ext. 5406

fred.eslami@ambest.comChristopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.comDaniel Teclaw

Associate Director

+1 908 439 2200, ext. 5394

daniel.teclaw@ambest.comJim Peavy

Director, Communications

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: EUROPE UNITED STATES NORTH AMERICA TEXAS NEW JERSEY

INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES INSURANCE FINANCE

SOURCE: AM Best

Copyright Business Wire 2021.

PUB: 11/10/2021 04:14 PM/DISC: 11/10/2021 04:14 PM

http://www.businesswire.com/news/home/20211110006357/en