AM Best has revised the outlooks to positive from stable for IAT Reinsurance Company Ltd. (IAT Re) and the members of Harco National Group (Harco), while affirming their Financial Strength Rating (FSR) of A- (Excellent) and Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent).
The ratings for IAT Re are based on AM Best’s assessment of the company’s balance sheet strength, which is considered very strong, as well as its adequate operating performance, neutral business profile, and appropriate enterprise risk management (ERM).
AM Best said that the company’s risk-adjusted capitalization remains at the strongest level. Its reserve position has strengthened, leading to improved development and reduced volatility around BCAR.
IAT Re’s financial results have remained profitable despite economic challenges and major catastrophe events in recent years. The company, domiciled in the Cayman Islands, provides excess of loss and other reinsurance solutions to primary insurers.
A substantial portion of its premiums come from U.S. subsidiaries through quota share reinsurance agreements. These agreements support various lines of business, including commercial auto liability, commercial auto physical damage, homeowners, surety, inland marine, general liability, property, and workers’ compensation. Business is distributed through independent agencies, wholesale agents, and brokers.
In addition to the revised outlooks for IAT Re and Harco, AM Best affirmed the FSR of A- (Excellent) and Long-Term ICR of “a-” (Excellent) for Allegheny Casualty Company (ACC), based in Newark, New Jersey, with a stable outlook.
Last month, AM Best also lifted the credit ratings of global reinsurer SCOR SE and its main subsidiaries, removing them from review and assigning a stable outlook following a comprehensive review of the company’s recent financial adjustments and strategic changes in its life and health (L&H) reinsurance business.
SCOR faced a tough third quarter following the announcement of a €117 million net loss in the division.
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