AM Best Upgrades Credit Ratings of Illinois Casualty Company
22 Junho 2021 - 11:54AM
Business Wire
AM Best has upgraded the Financial Strength Rating to A-
(Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating
(Long-Term ICR) to “a-” (Excellent) from “bbb+” (Good) of Illinois
Casualty Company (ICC). Concurrently, AM Best has upgraded the
Long-Term ICR to “bbb-” (Good) from “bb+” (Good) of ICC Holdings,
Inc. (ICCH) [NASDAQ: ICCH], the publicly traded holding company
that owns 100% of ICC. The outlook of these Credit Ratings
(ratings) is stable. Both companies are domiciled in Rock Island,
IL.
The ratings reflect ICC’s balance sheet strength, which AM Best
assesses as very strong, as well as its adequate operating
performance, limited business profile and appropriate enterprise
risk management (ERM).
The upgrade reflects sustained improvement in ICC’s overall
balance sheet strength. ICC has maintained the strongest level of
risk-adjusted capitalization, as measured by Best’s Capital
Adequacy Ratio (BCAR), while lowering underwriting leverage over
the most recent five-year period. Surplus has grown in four of the
past five years, primarily driven by investment income and the
one-time capital contribution of $18.5 million when ICC
demutualized and proceeds from the public offering were
down-streamed from the holding company into the insurance entity.
In total, surplus grew by 119% from year-end 2015 to year-end 2020.
Loss reserve development has been consistently redundant and loss
reserves as a percentage of surplus and earned premium compare
favorably with AM Best’s composite average. Furthermore, ICC
prudently employs a reinsurance program to insulate the balance
sheet from severe events.
ICC continues to diversify geographically its niche book of
business serving the food and beverage industry. Despite the
pandemic presenting a number of challenges, ICC has effectively
navigated the stresses over the previous year. Coverage for
business interruption claims was not triggered due to the
prevailing contract language and the company smoothly transitioned
to a remote working environment. Premiums declined in 2020 as a
result of pressure on new business and restaurant sales; however,
this is expected to rebound once pandemic pressures subside. While
expanding, the company has maintained adequate operating
performance and modest market share in key states. The company’s
ERM program is considered appropriate for the risk profile.
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 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.
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/20210622005838/en/
Christopher Draghi Associate Director +1 908
439 2200, ext. 5043 chris.draghi@ambest.com
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Joseph Burtone Director +1 908 439 2200, ext.
5125 joseph.burtone@ambest.com
Jim Peavy Director, Communications +1 908 439
2200, ext. 5644 james.peavy@ambest.com
ICC (NASDAQ:ICCH)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
ICC (NASDAQ:ICCH)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024