Best's Review - August 2022 Edition

< PreviousBest’s Credit Rating Actions 68BEST’S REVIEW • AUGUST 2022 Rating Action Business Type Company Name/ Ultimate ParentAMB# CurrentPrevious Domicile FSR ICR Outlook/ Implications FSR ICR Outlook/ Implications AMERICAS LIFE/HEALTH (CONTINUED) Outlook Change H Cigna HealthCare of California, Inc. Cigna Corporation 068912 AStableAStable California, USA aPositiveaStable Outlook Change H Cigna HealthCare of Colorado, Inc. Cigna Corporation 068864 AStableAStable Colorado, USA aPositiveaStable Outlook Change H Cigna HealthCare of Connecticut, Inc. Cigna Corporation 068865 AStableAStable Connecticut, USA aPositiveaStable Outlook Change H Cigna HealthCare of Florida, Inc. Cigna Corporation 068860 AStableAStable Florida, USA aPositiveaStable Outlook Change H Cigna HealthCare of Georgia, Inc. Cigna Corporation 068753 AStableAStable Georgia, USA aPositiveaStable Outlook Change H Cigna HealthCare of Illinois, Inc. Cigna Corporation 068867 AStableAStable Illinois, USA aPositiveaStable Outlook Change H Cigna HealthCare of Indiana, Inc. Cigna Corporation 068536 AStableAStable Indiana, USA aPositiveaStable Outlook Change H Cigna HealthCare of New Jersey, Inc. Cigna Corporation 068862 AStableAStable New Jersey, USA aPositiveaStable Outlook Change H Cigna HealthCare of North Carolina, Inc. Cigna Corporation 068570 AStableAStable North Carolina, USA aPositiveaStable Outlook Change H Cigna HealthCare of South Carolina, Inc. Cigna Corporation 068594 AStableAStable South Carolina, USA aPositiveaStable Outlook Change H Cigna HealthCare of St Louis, Inc. Cigna Corporation 068877 AStableAStable Missouri, USA aPositiveaStable Outlook Change H Cigna HealthCare of Tennessee, Inc. Cigna Corpor ation 068878 AStableAStable Tennessee, USA aPositiveaStable Outlook Change H Cigna HealthCare of Texas, Inc. Cigna Corporation 068828 AStableAStable Texas, USA aPositiveaStable Outlook Change H Cigna National Health Insurance Company Cigna Corporation 006203 AStableAStable Ohio, USA aPositiveaStable Outlook Change L Cigna Worldwide Insurance Company Cigna Corporation 008944 AStableAStable Delaware, USA aPositiveaStable DowngradeH ConnectiCare, Inc. EmblemHealth, Inc. 068517 CStableC+Negative Connecticut, USA ccc+Negativeb-Negative Outlook Change L Connecticut General Life Insurance Co Cigna Corporation 006266 AStableAStable Connecticut, USA aPositiveaStable UpgradeH Continental American Insurance Company Aﬂac Incorporated 007411 A+StableA+Stable Nebraska, USA aaStableaa-Positive UpgradeH Delta Dental Insurance Company Dentegra Group Inc 009147 AStableAStable Delaware, USA a+StableaPositive UpgradeH Delta Dental of California Dentegra Group Inc 068800 AStableAStable California, USA a+StableaPositive UpgradeH Delta Dental of New York, Inc. Dentegra Group Inc 064594 AStableAStable New York, USA a+StableaPositive UpgradeH Delta Dental of Pennsylvania Dentegra Group Inc 064557 AStableAStable Pennsylvania, USA a+StableaPositive DowngradeH EmblemHealth Insurance Company EmblemHealth, Inc. 008034 CStableC+Negative New York, USA ccc+Negativeb-Negative Outlook: Positive, Negative, Stable. Implications: Positive, Negative, Developing. Business Type: P = Property/Casualty (Nonlife); L = Life; H = Health; T = Title; C = Composite. Opinion Modifiers: u = Under Review; sf = Structured Finance; i = Indicative Credit Rating Modifier; s = Syndicate Credit Rating Modifier69BEST’S REVIEW • AUGUST 2022 Rating Action Business Type Company Name/ Ultimate ParentAMB# CurrentPrevious Domicile FSR ICR Outlook/ Implications FSR ICR Outlook/ Implications AMERICAS LIFE/HEALTH (CONTINUED) DowngradeH EmblemHealth Plan, Inc. EmblemHealth, Inc. 064601 CStableC+Negative New York, USA ccc+Negativeb-Negative DowngradeH Health Ins Plan of Greater New York EmblemHealth, Inc. 068985 CStableC+Negative New York, USA ccc+Negativeb-Negative Rating Afﬁrmation L Lombard International Life Assurance Co BTO LIA Holdings (Cayman), L.P. 007142 A-NegativeA- uNegative Pennsylvania, USA a-Negativea- uNegative Rating Afﬁrmation L Lombard International Life Ltd. BTO LIA Holdings (Cayman), L.P. 094344 A-NegativeA- uNegative Bermuda a-Negativea- uNegative Rating Afﬁrmation L Lombard Intl Life Assur Co (Bermuda) Ltd BTO LIA Holdings (Cayman), L.P. 094345 A-NegativeA- uNegative Bermuda a-Negativea- uNegative Rating Afﬁrmation L Lombard Intl Life Assur Co of New York BTO LIA Holdings (Cayman), L.P. 068237 A-NegativeA- uNegative New York, USA a-Negativea- uNegative Outlook Change H Loyal American Life Insurance Company Cigna Corporation 006671 AStableAStable Ohio, USA aPositiveaStable Rating Afﬁrmation L Merit Life Insurance Co. 777 Partners LLC 006703 A-StableA- uDeveloping Texas, USA a-Stablea- uDeveloping Rating Afﬁrmation H Moda Health Plan, Inc. Oregon Dental Service 011437 B+NegativeB+ uNegative Oregon, USA bbb-Negativebbb- uNegative Rating Afﬁrmation H Oregon Dental Service Oregon Dental Service 064364 B+NegativeB+ uNegative Oregon, USA bbb-Negativebbb- uNegative Outlook Change H Provident American Life & Health Ins Co Cigna Corporation 006932 AStableAStable Ohio, USA aPositiveaStable Rating Withdrawal L Triple-S Blue, Inc., I.I.* GuideWell Mutual Holding Corporation 006135 NRBStable Puerto Rico, USA nrbbStable AMERICAS PROPERTY/CASUALTY Rating Withdrawal P 1st Auto & Casualty Insurance Company** Wisconsin Reinsurance Corporation 011233 NRB+Negative Wisconsin, USA nrbbb-Negative Outlook Change PAMERIND Risk Management Corporation020751 A-NegativeA-Stable New Mexico, USA a-Negativea-Stable UpgradeP Anchor General Insurance Company Badani Family Trust 000364 B+StableBPositive California, USA bbb-Stablebb+Positive Rating Withdrawal PArmed Forces Insurance Exchange***003240 NRB+Negative Kansas, USA nrbbb-Negative UpgradePCalifornia Healthcare Ins Co, Inc. A RRG011230 AStableA-Positive Hawaii, USA aStablea-Positive UpgradeP Celina Mutual Insurance Company Celina Insurance Group 002077 AStableA-Positive Ohio, USA aStablea-Positive DowngradeP Danbury Insurance Company NLC Insurance Companies Pool 011046 B++StableA-Negative Massachusetts, USA bbb+Negativea-Negative DowngradeP Hingham Mutual Fire Insurance Company NLC Insurance Companies Pool 000478 B++StableA-Negative Massachusetts, USA bbb+Negativea-Negative Initial Rating P Intrepid Casualty Company W. R. Berkley Corporation 021259 A+StableNR Iowa, USA aa-Stablenr * The ratings were reduced to bb/B on June 22, 2022, and subsequently withdrawn. ** The ratings were affirmed on June 9, 2022, and subsequently withdrawn. *** The ratings were affirmed on June 15, 2022, and subsequently withdrawn. Outlook: Positive, Negative, Stable. Implications: Positive, Negative, Developing. Business Type: P = Property/Casualty (Nonlife); L = Life; H = Health; T = Title; C = Composite. Opinion Modifiers: u = Under Review; sf = Structured Finance; i = Indicative Credit Rating Modifier; s = Syndicate Credit Rating ModifierBest’s Credit Rating Actions 70BEST’S REVIEW • AUGUST 2022 Rating Action Business Type Company Name/ Ultimate ParentAMB# CurrentPrevious Domicile FSR ICR Outlook/ Implications FSR ICR Outlook/ Implications AMERICAS PROPERTY/CASUALTY (CONTINUED) Initial Rating P Intrepid Specialty Insurance Company W. R. Berkley Corporation 021258 A+StableNR Iowa, USA aa-Stablenr Rating Withdrawal PLiberty First RRG Insurance Company013788 NRE Utah, USA nre UpgradeP Miami Mutual Insurance Company Celina Insurance Group 004694 AStableA-Positive Ohio, USA aStablea-Positive UpgradeP Multinational Insurance Company Ancon Investment Corporation 014362 A-StableB++Positive Puerto Rico, USA a-Stablebbb+Positive Outlook Change P NAMIC Insurance Company, Inc. National Association of Mutual Ins Cos 010961 AStableANegative Indiana, USA aStableaNegative UpgradeP National Mutual Insurance Company Celina Insurance Group 002078 AStableA-Positive Ohio, USA aStablea-Positive DowngradeP New London County Mutual Insurance Co NLC Insurance Companies Pool 000696 B++StableA-Negative Connecticut, USA bbb+Negativea-Negative UpgradeP Paciﬁc Star Insurance Company Badani Family Trust 013755 B+StableBPositive Wisconsin, USA bbb-Stablebb+Positive Outlook Change PPreferred Mutual Insurance Company000774 AStableAStable New York, USA a+Stablea+Negative Outlook Change P Southern Trust Insurance Company Santee Partners, LP 004040 A-StableA-Negative Georgia, USA a-Stablea-Negative Outlook Change P Southern Vanguard Insurance Company InsVest Special Partner LLC 012223 A-StableA-Negative Texas, USA a-Stablea-Negative UpgradeP Stonetrust Commercial Insurance Company Chou Associates Management Inc. 012429 A-StableB++Positive Nebraska, USA a-Stablebbb+Positive UpgradeP Stonetrust Premier Casualty Insurance Co Chou Associates Management Inc. 020725 A-StableB++Positive Nebraska, USA a-Stablebbb+Positive Rating Afﬁrmation P Sutton National Insurance Company 777 Partners LLC 020625 A-StableA- uDeveloping Oklahoma, USA a-Stablea- uDeveloping Rating Afﬁrmation P Sutton Specialty Insurance Company 777 Partners LLC 020810 A-StableA- uDeveloping Oklahoma, USA a-Stablea- uDeveloping DowngradeP Thames Insurance Company, Inc. NLC Insurance Companies Pool 003774 B++StableA-Negative Connecticut, USA bbb+Negativea-Negative Outlook Change PWest Bend Mutual Insurance Company000964 APositiveAStable Wisconsin, USA a+Positivea+Stable UpgradeP West Virginia Farmers Mutual Ins Assn Celina Insurance Group 010244 AStableA-Positive West Virginia, USA aStablea-Positive Rating Withdrawal P Wisconsin Reinsurance Corporation**** Wisconsin Reinsurance Corporation 002791 NRB+Negative Wisconsin, USA nrbbb-Negative UpgradeP Wright National Flood Insurance Company Brown & Brown, Inc. 012582 AStableA-Stable Texas, USA aStablea-Stable EUROPE, MIDDLE EAST AND AFRICA Outlook Change P CIGNA Europe Insurance Co S.A. - N.V. Cigna Corporation 089527 AStableAStable Belgium aPositiveaStable Outlook Change P CIGNA Global Insurance Company Limited Cigna Corporation 076979 AStableAStable Guernsey aPositiveaStable **** The ratings were affirmed on June 9, 2022, and subsequently withdrawn. Outlook: Positive, Negative, Stable. Implications: Positive, Negative, Developing. Business Type: P = Property/Casualty (Nonlife); L = Life; H = Health; T = Title; C = Composite. Opinion Modifiers: u = Under Review; sf = Structured Finance; i = Indicative Credit Rating Modifier; s = Syndicate Credit Rating Modifier71BEST’S REVIEW • AUGUST 2022 Rating Action Business Type Company Name/ Ultimate ParentAMB# CurrentPrevious Domicile FSR ICR Outlook/ Implications FSR ICR Outlook/ Implications EUROPE, MIDDLE EAST AND AFRICA (CONTINUED) Outlook Change C CIGNA Life Ins Co of Europe S.A. - N.V. Cigna Corporation 083121 AStableAStable Belgium aPositiveaStable DowngradeP Kelvin Re Limited Cowen Inc. 093711 B+ uDevelopingA- uNegative Guernsey bbb- uDevelopinga- uNegative Outlook Change C Kenya Reinsurance Corporation Limited Kenya Reinsurance Corporation Limited 085416 BStableBStable Kenya bb+Stablebb+Negative Rating Afﬁrmation L Lombard International Assurance S.A. BTO LIA Holdings (Cayman), L.P. 077132 A-NegativeA- uNegative Luxembourg a-Negativea- uNegative DowngradeC Milli Reasurans Turk Anonim Sirketi Turkiye Is Bankasi A.S. 085454 B-NegativeB uNegative Turkey bb-Negativebb uNegative DowngradeP National Grid Ins Co (Isle of Man) Ltd National Grid plc 086910 A-StableAStable Isle of Man a-StableaStable Rating Afﬁrmation P Saudi Arabian Insurance Co B.S.C. (c) Mawarid Holding Company 092458 B+NegativeB+ uNegative Bahrain bbb-Negativebbb- uNegative Rating Withdrawal PSCOR Switzerland AG084820 NRA+Stable Switzerland nraa-Stable ASIA-PACIFIC UpgradeL Aﬂac Life Insurance Japan Ltd. Aﬂac Incorporated 095857 A+StableA+Stable Japan aaStableaa-Positive DowngradePBangkok Insurance Public Company Limited086195 B++StableA-Negative Thailand bbb+Stablea-Negative Under Review P Cathay Century Insurance Co Ltd Cathay Financial Holding Co., Ltd. 077106 A uNegativeAStable Taiwan a uNegativeaStable Under Review P Hotai Insurance Co., Ltd. Ho Tai Motor Co., Ltd. 086271 A uNegativeAStable Taiwan a uNegativeaStable AMERICAS Initial Rating P British Caribbean Insurance Co Ltd ICD Investments Limited 093385 B++StableNR Jamaica bbbStablenr UpgradeL Dentegra Seguros Dentales, S.A. Dentegra Group Inc 091484 AStableAStable Mexico a+StableaPositive Holding Companies Rating ActionCompany NameAMB# CurrentPrevious Domicile FSR ICR Outlook/ Implications FSR ICR Outlook/ Implications UpgradeAﬂac Incorporated058003aStablea-PositiveGeorgia, USA Outlook Change Cigna Corporation044026bbbPositivebbbStableDelaware, USA Rating Afﬁrmation LIA Holdings Limited046085bbb-Negativebbb- uNegativeUnited Kingdom Outlook: Positive, Negative, Stable. Implications: Positive, Negative, Developing. Business Type: P = Property/Casualty (Nonlife); L = Life; H = Health; T = Title; C = Composite. Opinion Modifiers: u = Under Review; sf = Structured Finance; i = Indicative Credit Rating Modifier; s = Syndicate Credit Rating ModifierBest’s Credit Rating Actions 72BEST’S REVIEW • AUGUST 2022 GUIDE TO BEST’S FINANCIAL STRENGTH RATINGS – (FSR) A Best’s Financial Strength Rating (FSR) is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. An FSR is not assigned to specific insurance policies or contracts and does not address any other risk, including, but not limited to, an insurer’s claims-payment policies or procedures; the ability of the insurer to dispute or deny claims payment on grounds of misrepresentation or fraud; or any specific liability contractually borne by the policy or contract holder. An FSR is not a recommendation to purchase, hold or terminate any insurance policy, contract or any other financial obligation issued by an insurer, nor does it address the suitability of any particular policy or contract for a specific purpose or purchaser. In addition, an FSR may be displayed with a rating identifier, modifier or affiliation code that denotes a unique aspect of the opinion. Best’s Financial Strength Rating (FSR) Scale Rating Categories Rating Symbols Rating Notches* Category Definitions Superior A+A++Assigned to insurance companies that have, in our opinion, a superior ability to meet their ongoing insurance obligations. ExcellentAA-Assigned to insurance companies that have, in our opinion, an excellent ability to meet their ongoing insurance obligations. GoodB+B++Assigned to insurance companies that have, in our opinion, a good ability to meet their ongoing insurance obligations. FairBB- Assigned to insurance companies that have, in our opinion, a fair ability to meet their ongoing insurance obligations. Financial strength is vulnerable to adverse changes in underwriting and economic conditions. MarginalC+C++ Assigned to insurance companies that have, in our opinion, a marginal ability to meet their ongoing insurance obligations. Financial strength is vulnerable to adverse changes in underwriting and economic conditions. WeakCC- Assigned to insurance companies that have, in our opinion, a weak ability to meet their ongoing insurance obligations. Financial strength is very vulnerable to adverse changes in underwriting and economic conditions. PoorD- Assigned to insurance companies that have, in our opinion, a poor ability to meet their ongoing insurance obligations. Financial strength is extremely vulnerable to adverse changes in underwriting and economic conditions. * Each Best’s Financial Strength Rating Category from “A+” to “C” includes a Rating Notch to reflect a gradation of financial strength within the category. A Rating Notch is expressed with either a second plus “+” or a minus “-”. Financial Strength Non-Rating Designations Designation Symbols Designation Definitions E Status assigned to insurers that are publicly placed, via court order into conservation or rehabilitation, or the international equivalent, or in the absence of a court order, clear regulatory action has been taken to delay or otherwise limit policyholder payments. FStatus assigned to insurers that are publicly placed via court order into liquidation after a finding of insolvency, or the international equivalent. S Status assigned to rated insurance companies to suspend the outstanding FSR when sudden and significant events impact operations and rating implications cannot be evaluated due to a lack of timely or adequate information; or in cases where continued maintenance of the previously published rating opinion is in violation of evolving regulatory requirements. NR Status assigned to insurance companies that are not rated; may include previously rated insurance companies or insurance companies that have never been rated by AM Best. Rating Disclosure – Use and Limitations A Best’s Credit Rating (BCR) is a forward-looking independent and objective opinion regarding an insurer’s, issuer’s or ﬁnancial obligation’s relative creditworthiness. The opinion represents a comprehensive analysis consisting of a quantitative and qualitative evaluation of balance sheet strength, operating performance, business proﬁle and enterprise risk management or, where appropriate, the speciﬁc nature and details of a security. Because a BCR is a forward-looking opinion as of the date it is released, it cannot be considered as a fact or guarantee of future credit quality and therefore cannot be described as accurate or inaccurate. A BCR is a relative measure of risk that implies credit quality and is assigned using a scale with a deﬁned population of categories and notches. Entities or obligations assigned the same BCR symbol developed using the same scale, should not be viewed as completely identical in terms of credit quality. Alternatively, they are alike in category (or notches within a category), but given there is a prescribed progression of categories (and notches) used in assigning the ratings of a much larger population of entities or obligations, the categories (notches) cannot mirror the precise subtleties of risk that are inherent within similarly rated entities or obligations. While a BCR reﬂects the opinion of A.M. Best Rating Services, Inc. (AM Best) of relative creditworthiness, it is not an indicator or predictor of deﬁned impairment or default probability with respect to any speciﬁc insurer, issuer or ﬁnancial obligation. A BCR is not investment advice, nor should it be construed as a consulting or advisory service, as such; it is not intended to be utilized as a recommendation to purchase, hold or terminate any insurance policy, contract, security or any other ﬁnancial obligation, nor does it address the suitability of any particular policy or contract for a speciﬁc purpose or purchaser. Users of a BCR should not rely on it in making any investment decision; however, if used, the BCR must be considered as only one factor. Users must make their own evaluation of each investment decision. A BCR opinion is provided on an “as is” basis without any expressed or implied warranty. In addition, a BCR may be changed, suspended or withdrawn at any time for any reason at the sole discretion of AM Best. For the most current version, visit www.ambest.com/ratings/index.html. BCRs are distributed via the AM Best website at www.ambest.com. For additional information regarding the development of a BCR and other rating-related information and deﬁnitions, including outlooks, modiﬁers, identiﬁers and afﬁliation codes, please refer to the report titled “Guide to Best’s Credit Ratings” available at no charge on the AM Best website. BCRs are proprietary and may not be reproduced without permission. Copyright © 2022 by A.M. Best Company, Inc. and/or its afﬁliates.ALL RIGHTS RESERVED.Version 121719 LEVERAGE YOUR BEST’S CREDIT RATING WITH A BESTMARK FOR RATED INSURERS 21.MK101GA Showcase your ﬁnancial strength with a BestMark icon on your website and promotional materials. YourCompanyRating Our Insight, Your Advantage ™ www.ambest.com (908) 439-220073BEST’S REVIEW • AUGUST 2022 GUIDE TO BEST’S ISSUER CREDIT RATINGS – (ICR) A Best’s Issuer Credit Rating (ICR) is an independent opinion of an entity’s ability to meet its ongoing financial obligations and can be issued on either a long- or short-term basis. A Long-Term ICR is an opinion of an entity’s ability to meet its ongoing senior financial obligations, while a Short-Term ICR is an opinion of an entity’s ability to meet its ongoing financial obligations with original maturities generally less than one year. An ICR is an opinion regarding the relative future credit risk of an entity. Credit risk is the risk that an entity may not meet its contractual financial obligations as they come due. An ICR does not address any other risk. In addition, an ICR is not a recommendation to buy, sell or hold any securities, contracts or any other financial obligations, nor does it address the suitability of any particular financial obligation for a specific purpose or purchaser. An ICR may be displayed with a rating identifier or modifier that denotes a unique aspect of the opinion. Best’s Long-Term Issuer Credit Rating (Long-Term ICR) Scale Rating Categories Rating Symbols Rating Notches* Category Definitions Exceptionalaaa-Assigned to entities that have, in our opinion, an exceptional ability to meet their ongoing senior financial obligations. Superior aaaa+ / aa-Assigned to entities that have, in our opinion, a superior ability to meet their ongoing senior financial obligations. Excellentaa+ / a-Assigned to entities that have, in our opinion, an excellent ability to meet their ongoing senior financial obligations. Goodbbbbbb+ / bbb-Assigned to entities that have, in our opinion, a good ability to meet their ongoing senior financial obligations. Fairbbbb+ / bb- Assigned to entities that have, in our opinion, a fair ability to meet their ongoing senior financial obligations. Credit quality is vulnerable to adverse changes in industry and economic conditions. Marginalbb+ / b- Assigned to entities that have, in our opinion, a marginal ability to meet their ongoing senior financial obligations. Credit quality is vulnerable to adverse changes in industry and economic conditions. Weakcccccc+ / ccc- Assigned to entities that have, in our opinion, a weak ability to meet their ongoing senior financial obligations. Credit quality is vulnerable to adverse changes in industry and economic conditions. Very Weakcc- Assigned to entities that have, in our opinion, a very weak ability to meet their ongoing senior financial obligations. Credit quality is very vulnerable to adverse changes in industry and economic conditions. Poorc- Assigned to entities that have, in our opinion, a poor ability to meet their ongoing senior financial obligations. Credit quality is extremely vulnerable to adverse changes in industry and economic conditions. * Best’s Long-Term Issuer Credit Rating Categories from “aa” to “ccc” include Rating Notches to reflect a gradation within the category to indicate whether credit quality is near the top or bottom of a particular Rating Category. Rating Notches are expressed with a “+” (plus) or “-” (minus). Best’s Short-Term Issuer Credit Rating (Short-Term ICR) Scale Rating Categories Rating Symbols Category Definitions StrongestAMB-1+Assigned to entities that have, in our opinion, the strongest ability to repay their short-term financial obligations. Outstanding AMB-1Assigned to entities that have, in our opinion, an outstanding ability to repay their short-term financial obligations. SatisfactoryAMB-2Assigned to entities that have, in our opinion, a satisfactory ability to repay their short-term financial obligations. AdequateAMB-3 Assigned to entities that have, in our opinion, an adequate ability to repay their short-term financial obligations; however, adverse industry or economic conditions likely will reduce their capacity to meet their financial commitments. QuestionableAMB-4 Assigned to entities that have, in our opinion, questionable credit quality and are vulnerable to adverse economic or other external changes, which could have a marked impact on their ability to meet their financial commitments. Long- and Short-Term Issuer Credit Non-Rating Designations Designation Symbols Designation Definitions dStatus assigned to entities (excluding insurers) that are in default or when a bankruptcy petition or similar action has been filed and made public. e Status assigned to insurers that are publicly placed, via court order into conservation or rehabilitation, or the international equivalent, or in the absence of a court order, clear regulatory action has been taken to delay or otherwise limit policyholder payments. fStatus assigned to insurers that are publicly placed via court order into liquidation after a finding of insolvency, or the international equivalent. s Status assigned to rated entities to suspend the outstanding ICR when sudden and significant events impact operations and rating implications cannot be evaluated due to a lack of timely or adequate information; or in cases where continued maintenance of the previously published rating opinion is in violation of evolving regulatory requirements. nrStatus assigned to entities that are not rated; may include previously rated entities or entities that have never been rated by AM Best. Rating Disclosure: Use and Limitations A Best’s Credit Rating (BCR) is a forward-looking independent and objective opinion regarding an insurer’s, issuer’s or ﬁnancial obligation’s relative creditworthiness. The opinion represents a comprehensive analysis consisting of a quantitative and qualitative evaluation of balance sheet strength, operating performance, business proﬁle and enterprise risk management or, where appropriate, the speciﬁc nature and details of a security. Because a BCR is a forward-looking opinion as of the date it is released, it cannot be considered as a fact or guarantee of future credit quality and therefore cannot be described as accurate or inaccurate. A BCR is a relative measure of risk that implies credit quality and is assigned using a scale with a deﬁned population of categories and notches. Entities or obligations assigned the same BCR symbol developed using the same scale, should not be viewed as completely identical in terms of credit quality. Alternatively, they are alike in category (or notches within a category), but given there is a prescribed progression of categories (and notches) used in assigning the ratings of a much larger population of entities or obligations, the categories (notches) cannot mirror the precise subtleties of risk that are inherent within similarly rated entities or obligations. While a BCR reﬂects the opinion of A.M. Best Rating Services, Inc. (AM Best) of relative creditworthiness, it is not an indicator or predictor of deﬁned impairment or default probability with respect to any speciﬁc insurer, issuer or ﬁnancial obligation. A BCR is not investment advice, nor should it be construed as a consulting or advisory service, as such; it is not intended to be utilized as a recommendation to purchase, hold or terminate any insurance policy, contract, security or any other ﬁnancial obligation, nor does it address the suitability of any particular policy or contract for a speciﬁc purpose or purchaser. Users of a BCR should not rely on it in making any investment decision; however, if used, the BCR must be considered as only one factor. Users must make their own evaluation of each investment decision. A BCR opinion is provided on an “as is” basis without any expressed or implied warranty. In addition, a BCR may be changed, suspended or withdrawn at any time for any reason at the sole discretion of AM Best. For the most current version, visit www.ambest.com/ratings/index.html. BCRs are distributed via the AM Best website at www.ambest.com. For additional information regarding the development of a BCR and other rating-related information and deﬁnitions, including outlooks, modiﬁers, identiﬁers and afﬁliation codes, please refer to the report titled “Guide to Best’s Credit Ratings” available at no charge on the AM Best website. BCRs are proprietary and may not be reproduced without permission. Copyright © 2022 by A.M. Best Company, Inc. and/or its afﬁliates. ALL RIGHTS RESERVED. Version 12171974BEST’S REVIEW • AUGUST 2022 Corporate Changes LIFE/HEALTH Merger Royalty Capital Life Insurance Co. (AMB# 060739), Jefferson City, MO, USA. This company merged with and into Family Benefit Life Insurance Co. on March 1, 2022. Acquisition & Ownership Change Royalty Capital Life Insurance Co. (AMB# 060739), Jefferson City, MO, USA. This company was acquired by First Trinity Financial Corp. from Royal Capital Corp. on Jan. 4, 2022. PROPERTY/CASUALTY Merger Viva Seguros Insurance Co. (AMB# 022012), Niles, IL, USA. This company merged with and into Unique Insurance Co. on Jan. 1, 2022. Name Changes Associated Indemnity Corp. (AMB# 021264), Petaluma, CA, USA. This company changed its name to WCF Select Insurance Co. on April 5, 2022. Colonial Lloyds (AMB# 001788), Fort Worth, TX, USA. This company changed its name to Roadrunner Indemnity Co. on April 1, 2022. Genworth Mortgage Insurance Corp. (AMB# 002742), Raleigh, NC, USA. This company changed its name to Enact Mortgage Insurance Corp. on Feb. 7, 2022. Vesta Insurance Corp. (AMB# 001813), San Antonio, TX, USA. This company changed its name to DNA Insurance Co. on Jan. 26, 2022. Acquisitions & Ownership Changes Colonial Lloyds (AMB# 001788), Fort Worth, TX, USA. This company converted from a Texas Lloyds plan to a Texas fire and casualty company and was acquired by Insurors Indemnity Co. on April 1, 2022. Rampart Insurance Co. (AMB# 002649), Amherst, NY, USA. This company was acquired by United Americas Insurance Co. from ILS Property & Casualty Re Ltd. on March 30, 2022. State Actions Southern Fidelity Insurance Co. (AMB# 013017), Tallahassee, FL, USA. This company was placed into insolvent liquidation on June 15, 2022. State National Fire Insurance Co. (AMB# 002830), Baton Rouge, LA, USA. This company was placed into insolvent liquidation on Jan. 7, 2022. BR Name and Ownership Changes, Mergers, Acquisitions and State Actions Royalty Capital Life Insurance, Viva Seguros and Southern Fidelity are among the U.S. life/health and property/casualty insurers that have experienced a corporate change.75BEST’S REVIEW • AUGUST 2022 AM Best’s Preferred Publisher Participants Preferred Publisher Program In Other News ... A roundup of news from publishers around the globe. Access to some sites may require registration or subscription. Artemis | www.artemis.bm Sydney, Australia ﬂood loss estimate rises to $122m Asia Insurance Review | www.asiainsurancereview.com Malaysia: Digital insurance and takaful to spur insurance penetration Beneﬁts Pro | www.beneﬁtspro.com/ These are the 10 costliest claim conditions of 2021 Bermuda: Re+ILS | www.bermudareinsurancemagazine.com/ Different strokes: ILS is much more than an alternative Business Insurance | www.businessinsurance.com Brokers prosper despite uncertain economy Captive Insurance Times | www.captiveinsurancetimes.com/ IRS ﬁles petition in Florida captive summons Captive International | www.captiveinternational.com/ The next big thing: Insurance-as-a-Service Carrier Management | www.carriermanagement.com The Next Wave of Climate Change Litigation: Industrial Meat Claims Journal | www.claimsjournal.com/ Viewpoint: The Role of Natural Language Processing in Claims Management Claims Magazine | propertycasualty360.com/claims-magazine/current-issue Deepfakes and Claims Automation Commercial Risk | www.commercialriskonline.com/ Ferma urges Czech EU Council presidency to focus on captives, insurance gaps and cyber risk Commercial Risk Europe | www.commercialriskonline.com/cr-europe UK solicitors urged to help stem rising tide of ransomware payments Emerging Risks | https://emergingrisks.co.uk/ Europe’s ﬂawed energy policy will exacerbate current crisis Forbes Advisor | www.forbes.com/advisor/ Best Life Insurance Companies of July 2022 Global Reinsurance | www.globalreinsurance.com/ Mid-year renewals: Inﬂation takes its toll Global Risk Manager | www.commercialriskonline.com/global-risk-manager Inﬂation to drive ‘difﬁcult conversations’ at renewals, warn brokers Health Payer Specialist | www.healthpayerspecialist.com Talent War Intensiﬁes Insurers Up the Ante in Compensation Inside P&C | www.insidepandc.com/ InsurTech: Building a Coalition of equity and underwriting capital Insurance & Investment Journal | https://insurance-portal.ca/ Regulatory enforcement report summarizes 2022 sanctions Insurance Age | www.insuranceage.co.uk/ Opinion: Unpicking the regulator’s ‘Dear CEO’ letters Insurance Asset Risk | www.insuranceassetrisk.com/ An irreversible shift: Insurance investment adapts to a world of climate extremes Insurance Insider | www.insuranceinsider.com/ Executive pay: Large equity awards send InsurTech leaders to top of 2021 rankings Insurance Journal | www.insurancejournal.com/magazines/ Construction Market & Risks Report Insurance Post | www.postonline.co.uk/ Government and insurers warned to ‘wake up’ to planning reform before Flood Re ends Insurance Times | www.insurancetimes.co.uk/ Emerging BazarCall ransomware targeting small businesses, CFC warns InsuranceAsia News | insuranceasianews.com/ APAC free trade pact could boost premiums by US$29bn InsuranceERM | www.insuranceerm.com/ IMF urges Irish supervisor to focus on intra-group reinsurance Intelligent Insurer | www.intelligentinsurer.com/ Calling budding broking entrepreneurs: ‘we’ve got capital, expertise, experience’ Life Annuity Specialist | www.lifeannuityspecialist.com Fraudsters Increasingly Take Aim at Speedy Life Underwriting Middle East Insurance Review | www.meinsurancereview.com/ UAE: Motor insurance premium rates of many insurers fall to ﬂoor limits National Underwriter P/C | www.propertycasualty360.com/ national-underwriter-property-casualty/issue-gallery Car brands linked to the most speeding tickets in 2022 P&C Specialist | www.pandcspecialist.com/ Demand Swells for Telematics as Rates Increase Reinsurance News | www.reinsurancene.ws/ Russia’s invasion of Ukraine could cause 30-40% rises in aviation insurance Retirement Income Journal | retirementincomejournal.com Why Annuity Issuers Use Bermuda Reinsurance Risk & Insurance | riskandinsurance.com/ 3 Types of Cyber Threat Actors and Their Motivations Risk.Net | www.risk.net/ When stagﬂation looms, investors get no satisfaction Strategic Risk | www.strategic-risk-europe.com/ Insurers must build new, data-led markets The Insurer | www.theinsurer.com/ The growing pains of ESG ThinkAdvisor | www.thinkadvisor.com/ Estate Planning for LGBTQ+ Couples: What to Discuss With Clients Thompson’s World Insurance News | http://thompsonsnews.com/ B.C. brokers face loss of CNS coverage Trading Risk | www.trading-risk.com/ PRA opens consultation on reforms to UK’s ISPV regime Publications and sites listed above are participants in AM Best’s Preferred Publisher Program. www.ambest.com/sales/preferredpublisher76BEST’S REVIEW • AUGUST 2022 Industry Updates US Insurance Trade Groups Fight Defense Bill Adding Cyber Insurance Regulation Industry groups say in addition to the increased costs and security concerns, their members don’t collect the kind of granular data that would be sought. A coalition of property/casualty insurance trade groups is urging Congress to reject language in a defense reauthorization package that would include new regulations requiring additional spending to collect data not collected by insurers now. Writing to U.S. Reps. Bennie Thompson and John Katko, the chairman and ranking member of the House Committee on Homeland Security, the trade groups said they support public/private solutions to the growing threat of cyberattacks. However, language added to the National Defense Authorization Act goes too far, they said. The language calls for creation of an Office of Cyber Statistics that has “misguided provisions” requiring insurers to file data on covered cyber claims. “If passed, this language would be an unwarranted intrusion into the contractual relationship between insurance providers and their customers,” the coalition said. “It would also serve as a precursor to a reporting mandate that would present a host of challenges on businesses of all sizes due to significant costs, limits on the availability of information sought, and potential new enforcement issues.” The letter was signed by representatives of the National Association of Mutual Insurance Companies, the Independent Insurance Agents and Brokers of America, the American Property Casualty Insurance Association and the Council of Insurance Agents and Brokers. In addition to the increased costs and security concerns, the trade groups said their members don’t collect the kind of granular data that would be sought and that information collected by legal counsel representing companies victimized in a cyberattack is privileged. “The proposal could lead to putting insurers in a difficult situation between promptly paying valid claims or failing to report information,” it said. Finally, the letter said insurers—primarily regulated on the state level—are already heavily regulated. Now, it said, they are facing more oversight by the federal Cybersecurity and Infrastructure Security Agency and potentially the U.S. Securities and Exchange Commission. Attempts to obtain comment from Thompson’s and Katko’s offices were not immediately successful. When the National Association of Insurance Commissioners met at the Spring Meeting, one of the main attractions was the Innovation, Cybersecurity and Technology (H) Committee, which made its debut on a national stage. —Timothy Darragh Best’s Insurance Professional Resources The following are newly qualified members in AM Best’s claims industry resource. Best’s Recommended Insurance Attorneys MPPL Business Law Law Firm Timisoara, Romania • +40 356 269 707 Best’s Recommended Expert Service Providers Jerry Birnbach LLC Retail Experts Somers, NY, USA • 917-691-4853 U.S. Legal Support, Inc. Litigation Services Houston, TX, USA • 312-961-8447 For information about these firms and Best’s Insurance Professional Resources, visit http://claimsresource.ambest.com/search/DirectoryCenter.aspx77BEST’S REVIEW • AUGUST 2022 CONNECT WITH AM BEST The Twitter, LinkedIn, YouTube & Facebook logos are trademarks of Twitter, Inc., LinkedIn Corporation, Google & Facebook, Inc. www.ambest.com On Twitter @AMBestCo @AMBestRatings On LinkedIn ambest.com/corplinkedin ambest.com/ratingslinkedin ambest.com/infoserviceslinkedin On YouTube www.ambest.com/ AMBestYouTube/ On Facebook www.facebook.com/ ambestcompany/ Via Multimedia Channels 21.MK011JA Insurers Don’t Have to Pay Hurricane Ida Expenses Judge ruled carriers don’t have to cover homeowners’ loss-of-use expenses in Louisiana. A n administrative law judge has ruled that the Louisiana Department of Insurance overstepped its bounds in ordering insurers to cover loss-of-use claims filed by residents fleeing Hurricane Ida despite not being under a mandatory evacuation order. Judge Patrick Moore’s ruling said Insurance Commissioner Jim Donelon’s Directive 218 exceeded his authority. Donelon argued parish officials along the Louisiana coast did not have enough time to assess the conditions to determine if a formal evacuation order was necessary. “Only 74 hours elapsed between the time of the first advisory from the National Hurricane Center about the formation of Tropical Depression Nine and the landfall of Hurricane Ida as a Category 4 hurricane with winds up to 150 mph,” the directive, issued Sept. 7, 2021, said. The directive ordered carriers to cover homeowners’ loss-of-use expenses regardless of whether their policies included a civil authority requirement. “To the extent any insurance contract may contain any language that implies the need for a civil authority to issue an evacuation order, they shall treat the multiplicity of actions taken by all public officials and the spirit and intent of all communications issued by all public officials as being tantamount to an order to evacuate that fulfills any such policy requirement,” it said. The ruling is a victory for State Farm, the biggest homeowners writer in the state, which, after the hurricane hit, said it would not follow a blanket order but follow the policies it wrote for homeowners. The company appreciates the judge’s ruling, State Farm said in a statement. “Following the terms of the contract ensures fair treatment for all of our customers, regardless of the storm or their location. We know this has been a difficult time for many Louisiana residents and we empathize with all those who were impacted by Hurricane Ida.” —Timothy Darragh Next >