OLDWICK, N.J., July 15, 2022--(BUSINESS WIRE)--AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of "bbb+" (Good) of Frank Winston Crum Insurance Company (FWCI) (Clearwater, FL).
The Credit Rating (ratings) reflect FWCI’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
The revision in the outlooks reflects the expectation that corrective actions taken by management will lead to favorable reserve development, supported by management’s more conservative reserving practices and the elimination of prior-year loss reserve development. In early 2022, the company completed a loss portfolio transfer whereby all losses and allocated loss-adjustment expenses (ALAE) occurrences with a date of loss on or prior to Dec. 31, 2019, for general liability, and on or prior to Dec. 31, 2020, for workers’ compensation, were transferred as part of the transaction.
FWCI has experienced solid surplus growth, reflective of positive underwriting performance, steady investment income and capital contributions from the parent. As a result, AM Best expects FWCI to continue demonstrating strong operating performance and the company’s risk-adjusted capitalization to remain at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s limited business profile reflects its geographic concentration, predominantly in Florida, and its product concentration, primarily as a guaranteed cost workers’ compensation and general liability insurance company. FWCI’s ERM program benefits from a comprehensive reinsurance program and incorporates controls to manage risk concentration in its framework.
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.
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