OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a Financial Strength Rating (FSR) of A- (Excellent) and a Long-Term Issuer Credit Rating (Long-Term ICR) of “a-“ to Cronus Insurance Company (Cronus) (Irving, TX). The outlook assigned to these Credit Ratings (ratings) is stable. Concurrently, A.M. Best has affirmed the FSR of A- (Excellent) and the Long-Term ICR (Long-Term ICR) of “a-” of Titan Insurance Company, Inc., A Risk Retention Group (Titan) (Charleston, SC), the immediate parent of Cronus. The outlook of these ratings is stable. Collectively, the companies are referred to as the Titan Insurance Group, which operate under a pooling agreement.
The ratings reflect Titan’s solid risk-adjusted capitalization, historically profitable operating results and defined mission of providing claims-made-based contractual liability insurance coverage to Ethos Group, Inc. and Ethos Administrative Services, Inc., which provide service to the automobile industry. Its services include an array of consumer products sold through its franchised vehicle dealership clients to purchasing consumers.
Cronus, a property/casualty company, incepted December 2016 with a $20 million contribution from its direct parent Titan. Cronus will insure the same affiliated entity obligors with Vehicle Service Contracts and other products as Titan currently does.
Partially offsetting these positive rating factors is the group’s elevated reinsurance dependence and its exposure to risk concentration since Ethos Group is the group’s exclusive source of business. In addition, product offerings are limited to automobile financial-related products. However, geographic diversification is adequate since Ethos Group sells products in over 40 states, and product growth has been achieved via auto-related ancillary products within its existing customer base.
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