AM Best Revises Outlooks to Stable for Florida Family Insurance Company and Its Subsidiary
2024年6月8日 - 4:48AM
ビジネスワイヤ(英語)
AM Best has revised the outlooks to stable from negative
and affirmed the Financial Strength Rating of B++ (Good) and the
Long-Term Issuer Credit Ratings of “bbb” (Good) of Florida Family
Insurance Company and its subsidiary, Florida Family Home Insurance
Company, which together make up the two pool members of Florida
Family Group (Florida Family). Both companies are domiciled in
Bonita Springs, FL.
The Credit Ratings (ratings) reflect Florida Family’s 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 revised outlooks to stable from negative reflect improvement
in Florida Family’s operating performance metrics due to
management’s various initiatives and recently implemented
legislative changes to tort reform. Beginning in 2022, the group
implemented a wind exposure reduction effort due to rising
reinsurance costs, elevated weather events and an uncertain claims
environment. The goal of the program included lowering the probable
maximum loss and subsequent reinsurance need, as well as improving
the overall risk characteristics of the book business in order to
produce more dependable results. The wind exposure initiative
focused on limiting exposure to older roofs, as well as policies in
southern coastal counties. Based on this initiative, a positive
trend in the group’s key operating performance metrics has been
demonstrated. Additionally, assignment of benefits reforms and more
broadly, one-way attorney’s fees legislation was enacted in
December 2022, which has mitigated the level of exposure. As a
result, a positive trend in litigated cases is noted leading to
improved performance in Florida’s marketplace and within Florida
Family’s results.
Further, Florida Family’s improved performance due to these more
stringent underwriting guidelines has driven organic surplus growth
and strengthened risk-adjusted capitalization, as measured by
Best’s Capital Adequacy Ratio (BCAR). It is AM Best’s expectation
that these initiatives will continue to stabilize previously
reported volatility in operating performance metrics.
The limited business profile reflects the limited geographic
spread of risk in Florida. An appropriate ERM program is maintained
through risk appetite and tolerance statements with risk management
capabilities appropriately aligned with the concentrated 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 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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Josie Novak Financial Analyst +1 908 882 2207
josie.novak@ambest.com
Richard Attanasio Senior Director +1 908 882 1638
richard.attanasio@ambest.com
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908 882 2310 christopher.sharkey@ambest.com
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2318 al.slavin@ambest.com