A.M. Best Upgrades Issuer Credit Ratings For First Acceptance Insurance Group And Its Members
A.M. Best Co. has upgraded the issuer credit ratings (ICR) to “bb+” from “bb” and affirmed the financial strength rating (FSR) of B (Fair) of First Acceptance Insurance Group (First Acceptance) (Nashville, TN) and its members.
Concurrently, A.M. Best has upgraded the ICR to “b” from “b-” for First Acceptance’s publicly traded parent holding company, First Acceptance Corporation (Delaware) (NYSE: FAC). The outlook for all ratings has been revised to positive from stable. (Please see below for a detailed listing of the companies.)
The upgrading of the ICRs for First Acceptance reflects its reduced underwriting leverage, which has had a favorable impact on its overall capitalization, coupled with consistent fee and investment income. In addition, the group has seen improvement in its underwriting and operating performance since its reserve strengthening in 2007. The rating actions also contemplate that management continues to take steps to improve underwriting results including rate increases, closure of underperforming retail stores and more efficient use of technology. As a result of these actions (coupled with current economic conditions), premium production has slowed considerably, which has positively impacted underwriting leverage and overall risk-adjusted capitalization.
The outlook contemplates the sustainability of favorable risk-adjusted capitalization, the adherence to adequate pricing and reserving discipline, and controlled growth.The ICRs have been upgraded to “bb+” from “bb” and the FSR of B (Fair) has been affirmed for First Acceptance Insurance Group and its following pooled members:
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV