Ratings Roundup: Safeco; GNY Group; American Road; Auto Owners

A.M. Best Co. has affirmed the financial strength rating (FSR) of “A” (Excellent) and the issuer credit ratings (ICR) of “a+” of the Safeco Insurance Companies and its members. Best has also affirmed the ICR of “bbb+” and the debt ratings of “bbb+” and “bbb” of Safeco Corporation’s existing senior debt and capital securities, respectively. The outlook for all ratings is positive. Best said the “ratings reflect Safeco’s continued solid operating performance, excellent capitalization and strong presence within the property/casualty industry.”

A.M. Best Co. has assigned a financial strength rating (FSR) of “A+” (Superior) and an issuer credit rating (ICR) of “aa-” to Phoenix Ariz.-based GNY Custom Insurance Company. Best also affirmed the FSR of “A+” (Superior) and assigned ICRs of “aa-” to the Greater New York Group (GNY Group) and its members. The GNY Group consists of Greater New York Mutual Insurance Company (GNY Mutual) and its three wholly owned subsidiaries, Insurance Company of Greater New York, Strathmore Insurance Company (both of New York, NY) and Custom. The outlook for all ratings is stable. Best explained that “Custom is a wholly owned subsidiary of GNY Mutual and was established to write non-admitted commercial property/casualty business offering multi-line excess and surplus (E&S) insurance coverages in multiple regional markets, utilizing the E&S distribution channels.”

A.M. Best Co. has affirmed the financial strength rating of “B++” (Good) and assigned an issuer credit rating of “bbb” to Dearborn Mich.-based The American Road Insurance Company with a negative outlook for both ratings. Best said the ratings “reflect TARIC’S excellent capitalization level, history of positive operating performance, conservative reserve practices and effective management of exposures. Over the past five years, the after-tax five-year return on surplus has averaged 17.2 percent, while capital and surplus levels have grown at a rate of 42.4 percent through the accumulation of net profits.”

A.M. Best Co. has affirmed the financial strength rating (FSR) of “A++” (Superior) and assigned issuer credit ratings (ICR) of “aa+” to Auto-Owners Insurance Group and its members. Best also affirmed the FSR of “A+” (Superior) and assigned an ICR of “aa-“to Auto-Owners Life Insurance Company. All the companies are located in Lansing, Mich. The outlook for all the ratings is stable. “The affirmation of the ratings of Auto-Owners reflects its outstanding capitalization, strong earnings and conservative operating philosophy,” Best explained.