World News: 14:39 GMT Wednesday 15th May 2019. [AM Best via Businesswire via SPi World News]
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 Rating of “bbb-” of Specialty Risk of America (SPRISKA) (Springfield, IL).
The Credit Ratings (ratings) reflect SPRISKA’s balance sheet strength, which AM Best categorizes as very strong, as well as its marginal operating performance, limited business profile and marginal enterprise risk management (ERM).
The revised outlooks to stable reflect the improvement in SPRISKA’s operating performance in 2018 and developing ERM capabilities. SPRISKA’s balance sheet strength is supported by the very strong level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). SPRISKA’s operating performance on a five-year average basis is marginal, with key operating metrics that lag its peer averages along with the company’s combined ratio. However, net income has been positive over the past few years, and the company achieved underwriting profitability in 2018 largely driven by improvement in the expense ratio.
SPRISKA’s business profile is limited due to the company’s geographical concentration and limited data analytics capability. In addition, the marginal ERM assessment reflects the emerging nature of the ERM program, which the company formalized in 2018. Negative rating action is possible if there is deterioration in the operating results or capitalization levels fall below AM Best’s expectation for the current rating level.
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.
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Business Wire: 14:39 GMT Wednesday 15th May 2019
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