Assurant can celebrate the fact that A.M. Best affirmed its financial strength ratings, but that news also came with a few words of caution.
The ratings agency said that there were a few check marks involving catastrophe exposure and reinsurance concerning the New York-based provider of specialty, niche-market insurance products.
“Somewhat offsetting these positive factors are the property/casualty group’s natural catastrophe exposure and its continued dependence on third-party reinsurance,” A.M. Best said. “These factors expose the property/casualty group’s earnings to a degree of variability.”
But A.M. Best also noted that Assurant does a good job of spreading its risk geographically. Another plus: the way management uses risk management tools, including tracking aggregation of risks and product design.
A.M. Best affirmed the financial strength rating of “A” (Excellent) and long-term issuer credit ratings of “a+” for Assurant’s U.S. P/C subsidiaries. At the same time, the ratings agency has also affirmed the long-term ICR of “bbb+” and the long- and short-term issuer credit ratings for Assurant. These credit ratings also have a stable outlook, A.M. Best said.
Assurant was in the news last October when it agreed to pay $2.5 billion to acquire The Warranty Group, a rival that provided insurance protection plans in areas including consumer electronics and appliances.
The company will release its 2018 first-quarter results on May 3, 2018, after the market closes.
Source: A.M. Best