< Previous68BEST’S REVIEW • DECEMBER 2022 AM Best Webinars Visit http://www.ambest.com/conferences/webinars.asp for details or to register for webinars. On Demand AM Best’s Briefing - The Workers’ Comp Market: What to Expect in the Year Ahead Senior AM Best analytical staff and leading industry experts explore the state of the workers’ compensation market and emerging trends in underwriting, reserving and claims. Topics of discussion include the effects of inflation on the current claims environment and reserves; the impact of economic and unemployment challenges on the workers’ compensation market; pricing; and the use of machine learning and artificial intelligence in pricing, claims and reserving. Moderator Sridhar Manyem, director, AM Best, is joined by panelists Richard Ives, vice president, Travelers; Brijesh Kumar, founder & CEO, 4aiSoft; and Gordon McLean, senior financial analyst, AM Best. Generational Effects on Juries and Litigation Outcomes Juries are expected to increasingly reflect the perspective of post-baby boomers, many of whom don’t share their parents’ views on corporate conduct, social responsibility and appropriate redress. This panel discussion focuses on how insurers are preparing for these attitudinal shifts, including changes in how they present, manage cases and communicate. Participants include Peri Alkas, insurance and reinsurance partner, Phelps Dunbar LLP; Michon Spinelli, partner, Ropers Majeski; and Lorie Sicafuse, Ph.D., litigation consultant, Courtroom Sciences Inc. This complimentary AM Best Webinar was hosted by Best’s Insurance Professional Resources. How Insurers Can Navigate Economic Downturns Through Modern Product Management In today’s dynamic markets, carriers with best-in-class speed to market and customer experience will win. Carriers can leverage modern product management practices and platforms to continually drive responses to product, underwriting, marketing, economic, and pricing challenges. Carriers that struggle to understand where to cut and where to invest in a recessionary environment can diminish their growth trajectory for three years post- recession. This webinar reviews how the right data, processes, and technology can help address the three types of dangers and related costs from sub-optimal reactions to market conditions and the eight dimensions of product management excellence and how to master them all, as well as how to drive best-in-class user experience into the carrier’s product management process. Also shared is a case study that demonstrates carriers can improve combined ratios by 1.5 to 3.0 and grow direct premiums by 10% to 15% in positive economic environments. In recessionary environments, best-in-class carriers show starkly different results starting with the recession and continuing for more than three years after the recession. Panelists include Ajish Gopan, vice president & global head, Insurance Insights & Data, Capgemini; Tim Hyman, enterprise chief underwriting officer-auto, American Family Insurance; Rajesh Iyer, global head, AI & machine learning, Financial Services Insights & Data, Capgemini; Marty Ellingsworth, executive managing director, P&C Insurance Intelligence Group, J.D. Power; and Adil Khan, assistant vice president, Data Science, CNA Insurance. This complimentary AM Best Webinar was sponsored by Capgemini. Panelists Discuss Workers’ Comp Market, Explore Generational Trends in the Courtroom Professionals also examine how insurers can use modern product management to weather economic downturns. To Read the Magazine Online Visit www.bestreview.com. On Social Media Visit @AMBestCo on Twitter, follow AM Best Information Services on LinkedIn and on YouTube. Visit www.ambest.com/socialmedia for information about how to follow AM Best on social media. Best’s Review delivers a comprehensive package of property/casualty and life/health insurance industry news, trends and analysis monthly. Find us on the internet at www.bestreview.com. The latest edition of Best’s Guide to Understanding the Insurance Industry is available on Amazon.69BEST’S REVIEW • DECEMBER 2022 AM Best TV & Audio Zurich’s Olson: MGAs Should Distinguish Themselves to Carriers Denise Olson, head of programs, Zurich North America, said managing general agents can demonstrate their quality through assessments and meeting best practices designations. Olson spoke with AM Best TV at Target Markets’ 22nd Annual Summit, held in Scottsdale, Arizona. HSB’s Riggs: Insurers Increasingly Employ Sensor Technology to Mitigate Risk Sensor technology is a valuable tool against fire, water and equipment risk for insurers, especially during business off hours when threats are more likely to go unnoticed, said John Riggs, chief technology officer and senior vice president, Applied Technology Solutions, HSB Group. Accelerant’s Radke: Most Insurer- Program Relationships ‘Don’t Feel Like a Partnership’ Jeff Radke, CEO and co-founder, Accelerant Holdings Bermuda, said his organization provides a platform that brings delegated underwriting authority enterprises and risk- capital providers into a shared environment. Radke spoke with AM Best TV at the LIIFT 2022 conference in New York City. Gallagher Bassett’s Hampshire: Insurance Industry Racing to Stay Ahead of Silver Tsunami Chris Hampshire, vice president, Gallagher Bassett and global president, CPCU Society, said the insurance industry must better position as an attractive career or risk further talent shortages. Hampshire spoke with AM Best TV at Philly I-Day 2022. Assessments, Best Practices Designations Help MGAs Stand Out, Zurich Exec Says Also, professionals examine the increased use of sensor technology to mitigate risk and discuss how to stem the insurance industry’s talent shortage. On Demand Denise Olson John Riggs Jeff Radke Cybersecurity Is Top of Mind in Today’s Business Environment, Travelers Survey Says Also, AM Best Audio explores how fraud detection false positives can be costly from the standpoint of both revenue and customer satisfaction. Travelers’ Francis: Cyberthreats Are Top Concern for Decision Makers Tim Francis, vice president, enterprise cyber lead at Travelers, discusses the 2022 Travelers Risk Index survey that found today’s business environment is riskier compared with a year ago. Most of those surveyed think a cyberattack on their company or organization is inevitable. TransUnion’s McElroy: False Positives Can Reduce Customer Satisfaction Mark McElroy, executive vice president and head of insurance for TransUnion, discusses a new report showing that false positives as part of fraud detection can cost businesses as much as $100 billion in revenue globally. BR Visit www.ambest.com/ambaudio to listen to new and archived audio from AM Best Audio. Chris Hampshire Visit www.ambest.com/ambtv to see new and archived video from AM Best TV.GET THE BEST PERSPECTIVE FOR NAVIGATING RISK Best’s Financial Strength Ratings • Best’s Issuer Credit Ratings Best’s Issue Credit Ratings • Best’s Rating Evaluation Service Best’s Rating Assessment Service • Best’s Preliminary Credit Assessment Best’s Performance Assessment for Delegated Underwriting Authority Enterprises Our Insight, Your Advantage ™ Learn More: www.ambest.com (908) 439-2200 22.MK132EBest’s Credit Rating Actions 71BEST’S REVIEW • DECEMBER 2022 T his edition lists all Credit Rating actions that occurred between Oct. 1 and Oct. 31, 2022. For the Credit Rating of any company rated by AM Best and basic company information, visit the AM Best website at www.ambest.com/ratings/access.html or download the ratings app at www.ambest.com/sales/ambmobileapp . Operating Companies Rating Action Business Type Company Name/ Ultimate ParentAMB# CurrentPrevious Domicile FSR ICR Outlook/ Implications FSR ICR Outlook/ Implications AMERICAS LIFE/HEALTH Initial Rating L Advantage Life Assurance I.I. Advantage Insurance Inc. 062525 B++Stable Puerto Rico, USA bbb+Stable Initial Rating L Advantage Life Puerto Rico A.I. Advantage Insurance Inc. 062524 B++Stable Puerto Rico, USA bbb+Stable Rating Affirmation L Best Meridian Insurance Company BMI Financial Group, Inc. 060007 A-NegativeA- uNegative Florida, USA a-Negativea- uNegative DowngradeLCatholic Order of Foresters006191 B++StableA-Negative Illinois, USA bbb+Stablea-Negative Initial Rating LGCU009807 A-StableNR Pennsylvania, USA a-Stablenr UpgradeL Guaranty Income Life Insurance Company Kuvare Holdings LP 006504 A-StableB++Stable Iowa, USA a-Stablebbb+Stable Outlook Change LIllinois Mutual Life Insurance Company006542 A-StableA-Negative Illinois, USA a-Stablea-Negative DowngradeHUnified Life Insurance Company060366 B uNegativeB+Negative Texas, USA bb+ uNegativebbb-Negative AMERICAS PROPERTY/CASUALTY Rating Affirmation P Aegis Security Insurance Company LD Investments LLC 003716 B++StableB++ uNegative Pennsylvania, USA bbb+Negativebbb+ uNegative UpgradeP ALPS Property & Casualty Insurance Co ALPS Corporation 011054 AStableA-Positive Montana, USA aStablea-Positive UpgradeP American Commerce Insurance Company Fundación MAPFRE 002065 AStableAStable Massachusetts, USA a+StableaStable Under Review P American Hallmark Insurance Co of Texas Hallmark Financial Services, Inc. 001728 A- uNegativeA-Negative Texas, USA a- uNegativea-Negative Under Review P Bondex Insurance Company Builders Insurance (A Mutual Captive Co) 013884 B++ uPositiveB++Stable New Jersey, USA bbb uPositivebbbStable Under Review P Capitol Indemnity Corporation Berkshire Hathaway Inc. 000235 A uPositiveAStable Wisconsin, USA a uPositiveaPositive Under Review P Capitol Specialty Insurance Corporation Berkshire Hathaway Inc. 001960 A uPositiveAStable Wisconsin, USA a uPositiveaPositive UpgradeP Citation Insurance Company Fundación MAPFRE 002851 AStableAStable Massachusetts, USA a+StableaStable Outlook Change P Colorado Farm Bureau Insurance Company Southern Casualty Holding Company 000278 A+NegativeA+Stable Mississippi, USA aa-Negativeaa-Stable UpgradeP Commerce Insurance Company Fundación MAPFRE 004663 AStableAStable Massachusetts, USA a+StableaStable UpgradeP Commerce West Insurance Company Fundación MAPFRE 003131 AStableAStable California, USA a+StableaStable Under Review P Covington Specialty Insurance Company Berkshire Hathaway Inc. 013859 A+ uPositiveA+Stable New Hampshire, USA aa- uPositiveaa-Stable Rating Withdrawal P EMC Reinsurance Company* Emp loyers Mutual Casualty Company 002808 NRB++Stable Iowa, USA nrbbb+Stable * The ratings were downgraded to bbb+/B++ from a/A on Oct. 3, 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 72BEST’S REVIEW • DECEMBER 2022 Rating Action Business Type Company Name/ Ultimate ParentAMB# CurrentPrevious Domicile FSR ICR Outlook/ Implications FSR ICR Outlook/ Implications AMERICAS PROPERTY/CASUALTY (CONTINUED) Under Review P Fair American Insurance and Reins Co Berkshire Hathaway Inc. 003727 A+ uPositiveA+Stable New York, USA aa- uPositiveaa-Stable Under Review P Fair American Select Insurance Company Berkshire Hathaway Inc. 022013 A+ uPositiveA+Stable Delaware, USA aa- uPositiveaa-Stable Outlook Change P Founders Insurance Company Pennsylvania National Mutual Cas Ins Co 012345 A-PositiveA-Stable New Jersey, USA a-Positivea-Stable Under Review P Hallmark County Mutual Insurance Company Hallmark Financial Services, Inc. 010445 A- uNegativeA-Negative Texas, USA a- uNegativea-Negative Under Review P Hallmark Insurance Company Hallmark Financial Services, Inc. 010612 A- uNegativeA-Negative Arizona, USA a- uNegativea-Negative Under Review P Hallmark National Insurance Company Hallmark Financial Services, Inc. 014154 A- uNegativeA-Negative Arizona, USA a- uNegativea-Negative Under Review P Hallmark Specialty Insurance Company Hallmark Financial Services, Inc. 010838 A- uNegativeA-Negative Oklahoma, USA a- uNegativea-Negative Under Review P Landmark American Insurance Company Berkshire Hathaway Inc. 012619 A+ uPositiveA+Stable New Hampshire, USA aa- uPositiveaa-Stable Outlook Change P Louisiana Farm Bureau Casualty Ins Co Southern Casualty Holding Company 002844 A+NegativeA+Stable Louisiana, USA aa-Negativeaa-Stable UpgradeP MAPFRE Insurance Company Fundación MAPFRE 002365 AStableAStable New Jersey, USA a+StableaStable Outlook Change P Mississippi Farm Bureau Casualty Ins Co Southern Casualty Holding Company 000513 A+NegativeA+Stable Mississippi, USA aa-Negativeaa-Stable Outlook Change P Partners Mutual Insurance Company Pennsylvania National Mutual Cas Ins Co 000194 A- PositiveA-Stable Wisconsin, USA a-Positivea-Stable Outlook Change P Penn National Security Insurance Company Pennsylvania National Mutual Cas Ins Co 010637 A-PositiveA-Stable Pennsylvania, USA a-Positivea-Stable Outlook Change P Pennsylvania National Mutual Cas Ins Co Pennsylvania National Mutual Cas Ins Co 002397 A-PositiveA-Stable Pennsylvania, USA a-Positivea-Stable Under Review P Platte River Insurance Company Berkshire Hathaway Inc. 012488 A uPositiveAStable Nebraska, USA a uPositiveaPositive Initial Rating P Research Insurance Company Limited Battelle Memorial Institute 072123 A-Stable Bermuda a-Stable Under Review P RSUI Indemnity Company Berkshire Hathaway Inc. 012603 A+ uPositiveA+Stable New Hampshire, USA aa- uPositiveaa-Stable Outlook Change P Southern Farm Bureau Casualty Ins Co Southern Casualty Holding Company 000844 A+NegativeA+Stable Mississippi, USA aa-Negativeaa-Stable Under Review P Transatlantic Reinsurance Company Berkshire Hathaway Inc. 003126 A+ uPositiveA+Stable New York, USA aa- uPositiveaa-Stable EUROPE, MIDDLE EAST AND AFRICA Under Review P Calpe Insurance Company Limited Berkshire Hathaway Inc. 092592 A+ uPositiveA+Stable Gibraltar aa- uPositiveaa-Stable Under Review CGhana Reinsurance PLC090035 B uNegativeBStable Ghana bb uNegativebbStable Initial Rating P Great Lakes Services UK Limited Munich Reinsurance Company 043032 A+Stable United Kingdom aaStable Under Review P Net Insurance S.p.A. Net Insurance S.p.A. 089932 B+ uDevelopingB+Stable Italy bbb- uDevelopingbbb-Stable Outlook Change P Peak Reinsurance AG Fosun International Holdings Ltd. 088364 A-NegativeA-Stable Switzerland a-Negativea-Stable 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 Modifier73BEST’S REVIEW • DECEMBER 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) Under Review P TransRe Europe S.A. Berkshire Hathaway Inc. 086500 A+ uPositiveA+Stable Luxembourg aa- uPositiveaa-Stable Under Review P TransRe London Limited Berkshire Hathaway Inc. 093227 A+ uPositiveA+Stable United Kingdom aa- uPositiveaa-Stable ASIA-PACIFIC Outlook Change P Adamjee Insurance Company Limited Adamjee Insurance Company Limited 085699 BStableBStable Pakistan bb+Negativebb+Stable Under Review P CMB Wing Lung Insurance Company Limited China Merchants Bank Co., Ltd. 084822 A- uPositiveA-Positive Hong Kong a- uPositivea-Positive DowngradeP EFU General Insurance Limited EFU General Insurance Limited 077151 BStableB+Stable Pakistan bb+Negativebbb-Stable Outlook Change C General Insurance Corporation of India General Insurance Corporation of India 086041 B++StableB++Stable India bbb+Negativebbb+Stable Rating Withdrawal L Iris Life Limited Partners Group Holdings Limited 091593 NRA uNegative New Zealand nra uNegative Outlook Change PJubilee General Insurance Company Ltd086770 B+NegativeB+Stable Pakistan bbb-Negativebbb-Stable Under Review P Kommesk-Omir Insurance Company JSC Centras Capital LLP 092322 B- uDevelopingB-Stable Kazakhstan bb- uDevelopingbb-Stable Outlook Change C Peak Reinsurance Company Limited Fosun International Holdings Ltd. 091406 A-NegativeA-Stable Hong Kong a-Negativea-Stable AMERICAS Rating Affirmation L Best Meridian International Ins Co SPC BMI Financial Group, Inc. 086911 A-NegativeA- uNegative Cayman Islands a-Negativea- uNegative DowngradeL Colina Insurance Limited AF Holdings Ltd. 089077 B++StableA-Negative Bahamas bbb+Stablea-Negative DowngradeL Family Guardian Insurance Company Ltd FamGuard Corporation Limited 087111 B++StableA-Negative Bahamas bbb+Stablea-Negative UpgradeP Gulf Insurance Limited Assuria N.V. 087112 B+PositiveBStable Trinidad and Tobago bbb-PositivebbStable Rating Affirmation PIRB - Brasil Resseguros S.A.085590 A-NegativeA- uNegative Brazil a-Negativea- uNegative Outlook Change P RF&G Insurance Company Limited G.A. Roe & Sons Limited 095896 B++StableB++Stable Belize bbbPositivebbbStable Holding Companies Rating ActionCompany NameAMB# CurrentPrevious Domicile FSR ICR Outlook/ Implications FSR ICR Outlook/ Implications Under Review Alleghany Corporation058309a- uPositivea-StableDelaware, USA DowngradeColina Holdings Bahamas Limited055763bb+Stablebbb-NegativeBahamas DowngradeFamGuard Corporation Limited087110bb+Stablebbb-NegativeBahamas Under Review Hallmark Financial Services, Inc.051075bbb- uNegativebbb-NegativeNevada, USA Under Review Transatlantic Holdings, Inc.058477a- uPositivea-StableDelaware, USA 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 74BEST’S REVIEW • DECEMBER 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. F Status 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. Your Company Rating Our Insight, Your Advantage ™ www.ambest.com (908) 439-220075BEST’S REVIEW • DECEMBER 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 12171976BEST’S REVIEW • DECEMBER 2022 Preferred Publisher Program AM Best’s Preferred Publisher Participants 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 TWIA expects “historically hard market” as 2023 reinsurance planning begins Asia Insurance Review | www.asiainsurancereview.com Singapore: Authorities launch digital banker’s guarantee or insurance bond system Auto Insurance Report | https://riskinformation.com/ Telematics Policyholders Find Disconnect Between Driving Behavior and Discounts Business Insurance | www.businessinsurance.com CDC releases new opioid prescribing guidelines Captive Insurance Times | https://www.captiveinsurancetimes.com/ Burcu Akdoganlar swaps Sompo Sigorta for Turkcell Captive International | https://www.captiveinternational.com/ Loss development factors: a primer for captives Carrier Management | www.carriermanagement.com How to Create Fully Integrated, Personalized Telematics Offerings—And Make a Profit Claims Journal | https://www.claimsjournal.com/ FAA Mandates Seaplane Inspections After Puget Sound Crash Claims Magazine | https://www. propertycasualty360.com/claims- magazine/current-issue/ Does insurance coverage continue when a named policyholder dies? Commercial Risk | https://www.commercialriskonline.com/ Conservative approach required for captives writing cyber, say experts Commercial Risk Europe | https://www.commercialriskonline. com/cr-europe/ EU agency says geopolitical volatility has radically altered cyber threat landscape Global Reinsurance | https://www.globalreinsurance.com/ Egypt moots catastrophe pool to build climate resilience Global Risk Manager | https://www.commercialriskonline.com/global- risk-manager/ US D&O prices fall in Q3 Insurance & Investment Journal | https://insurance-portal.ca/ Decumulation strategies diversify Insurance Age | https://www.insuranceage.co.uk/ Biba issues series of commitments after FCA flat insurance report Insurance Journal | https://www.insurancejournal.com/magazines/ National Flood Insurance Program Extended to Mid-December Insurance Post | https://www.postonline.co.uk/ Analysis: Top insurtechs report combined £100m in losses and £200m in debt Insurance Times | https://www.insurancetimes.co.uk/ Insurers may be ‘forced to scale back services’ as BoE hikes interest rates InsuranceAsia News | https://insuranceasianews.com/ SIRC: Capacity woes and rising rates dominate Asia renewals InsuranceERM | https://www.insuranceerm.com/ US P&C underwriting results expected to be worst since 2011 Intelligent Insurer | https://www.intelligentinsurer.com/ Redefining D&I for the next generation Life Annuity Specialist | https://www.lifeannuityspecialist.com One Product From Life Insurers That’s Selling Itself Right Now Middle East Insurance Review | https://www.meinsurancereview. com/ UAE: 9 insurers form Unemployment Insurance Pool that will start operating on 1 Jan 2023 National Underwriter P/C | https://www.propertycasualty360. com/national-underwriter-property-casualty/issue-gallery How succession planning can save your independent insurance agency P&C Specialist | https://www.pandcspecialist.com/ Carriers’ Move into Non-Admitted Lines Could Reshape P&C Market Property Insurance Report | https://riskinformation.com/ Florida Lawsuits Raining Down On Storm-Battered Marketplace Risk & Insurance | https://riskandinsurance.com/ Delivering Safety Training for Gen Z Will Require Explaining the Why Risk.Net | https://www.risk.net/ Fed official confirms US targeting 2025 for Basel III adoption Strategic Risk | https://www.strategic-risk-europe.com/ COP27: ‘Tangible progress’ essential to close climate finance gap The Insurer | https://www.theinsurer.com/ Property underwriters to increasingly differentiate among buyers post Ian Trading Risk | https://www.trading-risk.com/ Slow secondary trading amid uneven Ian pricing recovery Publications and sites listed above are participants in AM Best’s Preferred Publisher Program. www.ambest.com/sales/preferredpublisher77BEST’S REVIEW • DECEMBER 2022 Insurance Professional Resources Lost Evidence Figures Into Subrogation Claims Additional coverage includes the addition of six attorneys at Tressler and the recognition of a Phelps partner by a legal industry publication. Stutman Law attorney Kevin McBeth reminds insurance carriers and attorneys to encourage their insureds to preserve the scene of a loss until an adequate scene inspection can be conducted. In the absence of hard evidence, it can be difficult to move a claim forward. This was nearly the case at a Texas home that was insured by a client of the law firm that deals exclusively with subrogation cases. After living in the home for about a month, the insured discovered water coming through drywall in a third- floor closet. “By the time the homeowner discovered the problem, water had already traveled down multiple floors and caused substantial damage throughout the home,” the law firm, whose website features a blog concerning this case, said in a statement. The contractor they called in to fix the leak immediately went to work, fixing the damages before the insured had the chance to call their insurance company or Stutman. “So, everything was completed by the time we were made aware of the loss,” McBeth said. Thus, the homeowner missed out on the opportunity to have insurance professionals, experts and engineers come to the home to conduct a full investigation. All hope was not lost for the homeowner, though. Fortunately, the homeowner took some pictures of the scene before the contractor’s work began. “We were very fortunate in this case because our insured had the foresight to take some photographs once the wall had been opened. They actually got some photographs of the nail that had pierced the line,” McBeth said. This evidence, as well as the testimony of both the insured and the contractor, ultimately resulted in Stutman’s New Loss team reaching a settlement with the builder’s insurance company for about $165,000. This was about 80% of the client’s total damages, the law firm said. “Even in those instances where evidence is modified or lost, it’s not a situation where you immediately want to give up hope or close a subrogation investigation down,” McBeth said. “There can be secondary evidence like what we had in this particular case, which can still give you the basis to advance your claim forward.” Stutman Law focuses on subrogation cases only and is headquartered in Fort Washington, Pennsylvania. —Anthony Bellano Tressler LLP Expands Western US Presence Tressler LLP has announced that six attorneys from the law firm Wade & Lowe have joined Tressler’s Orange County and Los Angeles offices. Attorneys Edmond D. Wade, William R. Lowe, Jeffrey M. Carson, Amy K. Hulick, Renee A. Dutton and Christina N. Hoffman have joined the firm to expand Tressler’s presence in California. Wade specializes in automobile insurance law and coverage. He serves as an arbitrator on the State Bar Court and has been an arbitrator in the Los Angeles Superior Court arbitration program. Lowe specializes in insurance coverage issues relating to the duties to defend and indemnify actions under various liability policies. He defends both first- and third-party bad faith actions involving claims handling, coverage, cancellations and statutory liability. Carson handles all areas of insurance coverage law including assisting clients with Special Investigation Unit investigations, insurance policy interpretation, issues regarding independent counsel, bad faith litigation, actions for declaratory relief, disputes between multiple co-insurers and related appeals. Hulick represents insurers in insurance coverage disputes. She provides clients with coverage analysis and opinions involving business and personal liability policies, which include issues related to defamation, libel, slander, automobile liability, construction defects, premises liability, assault and battery, negligence, elder abuse, insurance fraud, privacy rights, wrongful eviction and habitability claims. Dutton’s practice areas include insurance coverage and litigation, and the defense of insureds in a variety of civil lawsuits. She specializes in assisting carriers with the efficient handling of settlement demands and preservation of evidence requests. Hoffman handles all phases of litigation from client development to settlement and trial. Her litigation experience includes matters related to product liability, catastrophic injury, class action lawsuits, environmental law, toxic torts, employment, privacy, property rights disputes, nuisance and habitability, education and disability- related discrimination. Tressler and Wade & Lowe are both known as experienced insurance coverage and litigation firms. Kevin McBethNext >