AM Best Revises Outlooks to Positive for Lebanon Valley Insurance Company, Affirms Credit Ratings of Tuscarora Wayne Insurance Company and Its Affiliate
2024年5月21日 - 11:06PM
ビジネスワイヤ(英語)
AM Best has revised the outlooks to positive from stable
and affirmed the Financial Strength Rating (FSR) of B++ (Good) and
the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb+” (Good)
of Lebanon Valley Insurance Company (Lebanon Valley). Concurrently,
AM Best has affirmed the FSR of A (Excellent) and the Long-Term
ICRs of “a+” (Excellent) of Tuscarora Wayne Insurance Company and
its affiliate, Keystone National Insurance Company. Together these
companies are collectively referred to as Tuscarora Wayne
Companies. The outlook of the FSR is stable, while the outlook of
the Long-Term ICRs is negative. All companies are domiciled in
Wyalusing, PA.
The Credit Ratings (ratings) of Lebanon Valley reflect its
balance sheet strength, which AM Best assesses as strong, as well
as its adequate operating performance, limited business profile and
appropriate enterprise risk management (ERM). The ratings also
reflect rating enhancement via the explicit and implicit support
provided as an affiliate of Tuscarora Wayne Companies.
The revised outlooks to positive from stable for Lebanon Valley
reflect its consistent surplus growth, with growth reported in each
of the past nine years, generally favorable loss reserve
development and low underwriting leverage metrics that compare
favorably with the composite’s average. The strong balance sheet
strength is supported further by the strongest level of
risk-adjusted capitalization, as measured by Best’s Capital
Adequacy Ratio (BCAR). The adequate operating performance reflects
a modest amount of volatility in recent years, with underwriting
losses in 2021 and 2023; however, Lebanon Valley has reported net
income in each of the past nine years. The limited business profile
reflects the company’s geographic concentration in Pennsylvania and
focus on commercial business. The company is a part of the ERM
program employed by Tuscarora Wayne Companies and is considered
appropriate for the company’s risk profile.
The ratings of Tuscarora Wayne Companies reflect its balance
sheet strength, which AM Best assesses as very strong, as well as
its strong operating performance, neutral business profile and
appropriate ERM.
The negative outlook of the Long Term ICRs of Tuscarora Wayne
Companies reflects recent volatility that deviates from historical
norms. On a long-term basis, the book of business had performed
strongly for a number of years; however, results have not reported
the same level of strength in more recent periods, in part owing to
greater weather activity, as well as the impact of fire losses,
both experiencing elevated severity amid inflationary conditions.
Nonetheless, there is an observed level of improvement in the most
current year. The group’s very strong balance sheet strength
assessment continues to be supported by the strongest level of
risk-adjusted capitalization, as measured by BCAR, solid liquidity
and generally consistent and favorable loss reserve development,
partially offset by dividends to its parent, which has limited
surplus growth somewhat. The neutral business profile continues to
focus on underserved commercial business exposures with moderate
geographic diversification. AM Best considers Tuscarora Wayne
Companies’ ERM program to be appropriate for the group’s risk
profile and includes prudent reinsurance protection and
comprehensive risk management.
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. For more information,
visit www.ambest.com.
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Daniel Mangano, CPCU Senior Financial Analyst
+1 908 882 1907 daniel.mangano@ambest.com Christopher
Draghi, CPCU, ARe Director +1 908 882 1749
chris.draghi@ambest.com Christopher Sharkey Associate
Director, Public Relations +1 908 882 2310
christopher.sharkey@ambest.com Al Slavin Senior Public
Relations Specialist +1 908 882 2318
al.slavin@ambest.com