AM Best has withdrawn the credit ratings of members of Wisconsin Reinsurance Group (WRG) as the company has requested to no longer participate in the agency’s interactive rating process due to negative outlooks.
According to a statement from the agency, the group obtained a Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Ratings of “bbb-” (Good) of Wisconsin Reinsurance Corporation and 1st Auto & Casualty Insurance Company (1st Auto).
The ratings reflect WRG’s balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.
The negative rating outlooks reflect AM Best’s concern regarding the effectiveness of WRG’s exposure management initiatives given the recent trend in underwriting losses, which have impacted risk-adjusted capitalization negatively.
Due to the group’s inability to stabilise results, as reflected by surplus declines reported in four out of the past five years, risk management capabilities have been brought into question, noted the agency.
