AM Best


A.M. Best Withdraws Credit Ratings of Security America Risk Retention Group, Inc.


CONTACTS:

Kim Muccia
Financial Analyst
+1 908 439 2200, ext. 5731
kimberly.muccia@ambest.com

Richard Attanasio
Senior Director
+1 908 439 2200, ext. 5432
richard.attanasio@ambest.com
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - JANUARY 18, 2018 10:18 AM (EST)
A.M. Best has downgraded the Financial Strength Rating (FSR) to B (Fair) from B+ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “bb+” from “bbb-” of Security America Risk Retention Group, Inc. (SARRG) (Burlington, VT). The outlook of the FSR has been revised to stable from negative while the outlook of the Long-Term ICR is negative. Concurrently, A.M. Best has withdrawn the ratings as the company has requested to no longer participate in the A.M. Best’s interactive Credit Rating (rating) process.

The ratings reflect SARRG’s balance sheet strength, which A.M. Best categorizes as adequate, as well as its marginal operating performance, limited business profile and marginal enterprise risk management. SARRG was incorporated as a risk retention group and offers general and professional liability coverage. The product concentration presents a high degree of competition, although the company is registered in all U.S. states. While the risk-adjusted capitalization is currently strong, as measured by Best’s Capital Adequacy Ratio (BCAR), it has diminished in recent years. Additionally, the company suffered adverse loss reserve development and unfavorable profitability measures.

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. 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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AMB# Company Name
076142 Security America Reassurance Group, Inc.