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FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 13, 2016 11:50 AM (EDT)
A.M. Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “a+” from “a” and affirmed the Financial Strength Rating (FSR) of A (Excellent) of First Guard Insurance Company (First Guard) (headquartered in Venice, FL). The outlook of the Long-Term ICR has been revised to stable from positive while the FSR outlook remains stable.
The Long-Term ICR upgrade reflects First Guard’s strong risk-adjusted capitalization, supported by low underwriting and investment leverage, consistently strong underwriting performance and conservative underwriting discipline. The Credit Ratings (ratings) also reflect the company’s expertise in the trucking physical damage market segment, targeting leased owner-operators. Partially offsetting these positive rating factors are First Guard’s narrow product focus within the commercial automobile line of business and below average investment yields.
A.M. Best believes the ratings are well-positioned at this time. The ratings are primarily driven by the company’s history of long-term stability in its operating performance and business profile, as well as its superior risk-adjusted capitalization. If a material change were to occur in these metrics, there is a reasonable chance that it could cause a negative rating action.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.