AM Best Upgrades Credit Ratings for BlueShore Insurance Company
2024年5月18日 - 1:32AM
ビジネスワイヤ(英語)
AM Best has upgraded the Financial Strength Rating to A
(Excellent) from A- (Excellent) and the Long-Term Issuer Credit
Rating to “a” (Excellent) from “a-” (Excellent) of BlueShore
Insurance Company (BlueShore) (Dallas, TX). The outlook of these
Credit Ratings (ratings) has been revised to stable from
positive.
The ratings reflect BlueShore’s balance sheet strength, which AM
Best assesses as very strong, as well as its strong operating
performance, limited business profile and appropriate enterprise
risk management (ERM).
The ratings upgrades reflect BlueShore’s sustained improvement
in underwriting performance and total profitability relative to
peers in the auto warranty segment. The improvement in results can
be directly attributed to management’s decision to transition the
company to becoming primarily a writer of default-based contractual
liability insurance policies (CLIP) from that of a first-dollar
writer. After implementing this change to its policies, the
company’s loss ratio declined to a single digit-average over the
five-year period ending in 2023. Ultimately, the default policies
carry minimal risk to BlueShore, as the company is obligated to pay
claims only if its affiliated obligors default or fail to perform
on its contractual obligations related to its auto warranty product
offerings. Currently, most policies are written on a default-basis,
except in limited jurisdictions where a first-dollar CLIP is
required. Prospectively, management’s projections are in line with
the current level of profitability, and management is not
anticipating making any changes to BlueShore’s underwriting
approach or adding any significant product offerings.
BlueShore’s balance sheet is supported by risk-adjusted
capitalization at the strongest level, as measured by Best’s
Capital Adequacy Ratio (BCAR), as well as a diversified investment
portfolio and the explicit support it receives from its parent
company, Verde Capital Partners. BlueShore’s balance sheet also
benefits from the funds-held amounts that it receives related to
the default-based policies it provides to its affiliates, which
acts as a form of collateral and further protects the insurer’s
capital base. The company’s limited business profile reflects its
significant product concentration and narrow market position. AM
Best considers the company’s ERM program to be appropriate for the
size and scope of its operation.
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.
Copyright © 2024 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/20240517215555/en/
Robert Gabriel Senior Financial Analyst +1 908 882
1789 robert.gabriel@ambest.com Christopher Sharkey Associate
Director, Public Relations +1 908 882 2310
christopher.sharkey@ambest.com Daniel Teclaw Director +1 908 882
2390 daniel.teclaw@ambest.com Al Slavin Senior Public Relations
Specialist +1 908 882 2318 al.slavin@ambest.com