AM Best Removes From Under Review With Positive Implications and Upgrades Issuer Credit Rating of American Surety Company

JULY 03, 2024 09:20 AM (EDT)

AM Best Removes From Under Review With Positive Implications and Upgrades Issuer Credit Rating of American Surety Company

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FOR IMMEDIATE RELEASE

OLDWICK - JULY 03, 2024 09:20 AM (EDT)
AM Best has removed from under review with positive implications and upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to "bbb+" (Good) from "bbb" (Good) and affirmed the Financial Strength Rating of B++ (Good) of American Surety Company (ASC) (Indianapolis, IN). The outlook assigned to these Credit Ratings (ratings) is positive.

The ratings reflect ASC's balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.

The upgrade of the Long-Term ICR reflects the enhanced implicit support provided to ASC as a part of Core Specialty Insurance Holdings, Inc. (Core Specialty). ASC's financial size is anticipated to increase substantially due to organization restructuring of Core Specialty post-acquisition, which will result in much higher affiliated investment levels. Additionally, it is anticipated that Core Specialty would provide financial support in the event ASC was in need.

The positive outlooks reflect the potential for realignment of the operating performance building block once prospective business plans are finalized and the expense structure under the new organization begins to take place. The outlooks are anticipated to be short term, with potential to be resolved within 12 months.

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 Performance Assessments, 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.