AM Best Raised Both Arbella’s Financial Strength Rating and Long-Term Issuer Credit Rating
AM Best has announced that it has upgraded the Credit Ratings of the Arbella Insurance Group. According to the official release, the rating agency raised the Quincy-based insurer’s Financial Strength Rating to A (Excellent) from A- (Excellent). In addition, it adjusted the Long-Term Issuer Credit Ratings to “a” from “a-”.
“Achieving this upgrade during these tumultuous times is a defining moment for us and speaks volumes about our financial strength,” said John Donohue, president, and CEO of Arbella Insurance Group. “This accomplishment reflects the hard work of our employees that have helped transform our company into a world-class organization. We are also grateful for the trust that our partner agents have had in Arbella over the years. This upgrade from AM Best reaffirms that we are committed to excellence and are a very strong company.”
In discussing the reasons behind the upgrade of Arbella’s rating, A.M. Best pinpointed the following factors in its which went into its decision-making process:
“The ratings of Arbella reflect the group’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile, and appropriate enterprise risk management (ERM). The ratings upgrades reflect Arbella’s strengthened risk-adjusted capitalization, supported by favorable trends in surplus growth and loss reserve development, as well as an enhanced reinsurance program. AM Best expects further improvement in risk-adjusted capitalization as the group continues to grow surplus through profitable operations and maintains its more robust reinsurance structure.
Additionally, the ratings reflect adequate operating performance, driven by key metrics that are in line with the private passenger standard auto and homeowners composite five-year averages, inclusive of pre-tax return on revenue, combined ratio and operating ratio. The ratings also reflect Arbella’s business profile, which is considered neutral, as the group’s focused geographic concentration is partially mitigated by the proven ability to effectively operate within its territories by capitalizing on enhanced data analytics and pricing programs. Furthermore, the ERM program is appropriate for the risk profile of the organization.”
