OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating (FSR) of C++ (Marginal) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “b” for the subsidiaries of First Acceptance Corporation (collectively referred to as First Acceptance Group) (Delaware). (See below for a detailed list of companies). Concurrently, AM Best has revised the outlook of the Long-Term ICR to stable from negative and affirmed the Long-Term ICR of “cc” of First Acceptance Corporation.
The ratings reflect First Acceptance Group’s balance sheet strength, which AM Best categorizes as weak, as well as its marginal operating performance, limited business profile and marginal enterprise risk management.
The outlook revisions are based on the stabilization in the group’s earnings in 2018. The favorable trend in operating results follows the group’s revised operational focus, providing enhanced agency services across their entire agency network. In addition, the group has become more selective with the risks they choose to retain and premium volume has declined sharply. As a result of this operational shift, the group’s underwriting and operating results and overall risk-adjusted capitalization have improved substantially.
The outlooks have been revised to stable from negative and the FSR of C++ (Marginal) and the Long-Term ICR of “b” affirmed for the following pooled subsidiaries of First Acceptance Corporation:
- First Acceptance Insurance Company, Inc.
- First Acceptance Insurance Company of Georgia, Inc.
- First Acceptance Insurance Company of Tennessee, Inc.
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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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