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AM Best Revises Outlooks to Positive for Members of Columbia Lloyds Companies


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+” of Columbia Lloyds Insurance Company and MDOW Insurance Company, which are collectively referred to as Columbia Lloyds Companies (Columbia Lloyds). Both companies are domiciled in Houston, TX.

The ratings reflect Columbia Lloyd’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The revised outlooks to positive reflect underwriting and operating performance metrics that outperform the composite driven by management’s corrective actions, inclusive of decreasing exposures and enforcing strict underwriting guidelines. These actions combined with a prudent reinsurance program, have led to improved profitability from earlier years. AM Best’s expectation is for the company’s above average operating performance to continue while it maintains very strong balance sheet strength.

Columbia Lloyds’ balance sheet strength reflects the strongest level of risk-adjusted capitalization and historically favorable reserve development, partially offset by above average dependence on reinsurance as measured by ceded leverage. The limited business profile reflects its geographically concentrated position in the Texas personal property market. Columbia Lloyds also benefits from an appropriate ERM program that supports the risk profile of the organization.

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 Understanding 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 rating agency and information provider with an exclusive focus on the insurance industry. Visit www.ambest.com for more information.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. 

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