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FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 14, 2017 08:34 AM (EDT)
A.M. Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Golden Bear Insurance Company (Golden Bear) (Stockton, CA).
The ratings are based upon Golden Bear’s supportive risk-adjusted capitalization, strong operating performance and prudent risk management strategies. The revision in the outlooks is due to the company’s consistently favorable underwriting and operating profitability, supportive risk-adjusted capitalization and well-established profile as a specialty underwriter. Golden Bear has a long-standing tradition as an opportunistic underwriter via their holding company/agency M.J. Hall & Company, Inc. Through this agency, they provide underwriting and brokerage services for strong reinsurance partners, in addition to their direct underwriting services. In recent years, Golden Bear has expanded their capabilities by becoming an authorized surplus lines carrier in additional states.
Offsetting these positive rating factors is Golden Bear’s vulnerability to reinsurance availability and pricing, given its heavy dependence upon reinsurance, as well as its geographic concentration of risk and the somewhat limited financial flexibility of its parent. The geographic concentration exposes Golden Bear to significant shock losses and competitive, regulatory and legislative market pressures.
This press release relates to rating(s) 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. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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