OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Eastern Atlantic Insurance Company (EAIC) (Harrisburg, PA).
The revised outlooks are due to the company’s inconsistent underwriting performance in recent years, which has led to a decrease in its surplus level. However, despite this and the repayment of a surplus note in 2013, EAIC continues to maintain supportive risk-adjusted capitalization for its current business profile. EAIC's strategy is centered on strengthening its position in its existing niche market while evaluating new business segments to determine compatibility within its business model. Management has focused its expansion efforts on the independent owner-operator trucking market segment operating in the short- to intermediate-haul range of up to 600 miles from their garaging location, which has proved to be a difficult market segment.
EAIC provides commercial automobile liability, including physical damage, motor truck cargo and surety bond coverage on a direct basis. It also reinsures a builder general liability program from one of its affiliates, Western Pacific Mutual Insurance Company, A Risk Retention Group, and a home warranty program of Warranty Underwriters Insurance Company, also an affiliated home warranty company.
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