Best's News


Best’s News & Research Service - April 16, 2015 02:42 PM (EDT)

A.M. Best Downgrades Ratings of Specialty Risk of America

  • April 16, 2015 02:42 PM (EDT)
    print icon

Oldwick //BestWire// - A.M. Best has downgraded the financial strength rating (FSR) to B+ (Good) from B++ (Good) and the issuer credit rating (ICR) to "bbb-" from "bbb+" of Specialty Risk of America (SPRISKA) (Springfield, IL). The outlook for the ICR remains negative, while the outlook for the FSR has been revised to negative from stable.

The ratings downgrade encompasses A.M. Best's concerns with the ongoing deterioration on SPRISKA's operating results since 2010. This decline in performance is seen in both insurance company operating ratios and traditional return measures. Significant execution risks and challenges remain as the company expands its jurisdictional footprint and implements premium growth initiatives. SPRISKA has recorded instability in its risk-adjusted capital measures since 2010, despite addressing policyholders' surplus levels by raising additional capital. The negative outlook reflects A.M. Best's belief that opportunities for SPRISKA to moderate and eliminate adverse performance, along with stabilizing profitability and eliminating variability in its capital position, are contracting.

Negative rating actions are probable if there is a continuation or worsening in the adverse operating results, capitalization levels fall below A.M. Best's expectations for the current rating level, or planned strategic initiatives fail to produce prompt and measureable improvement in performance. The ratings are contingent upon SPRISKA's near-term progress and management's success in revering the trends.

The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:


  • Understanding BCAR for Property/Casualty Insurers

  • Risk Management and the Rating Process for Insurance Companies

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 visit A.M. Best's Ratings & Criteria Center .

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.



Property And Liability Insurers United States Financial Strength Illinois Press Release Insurance Issuer Credit Rating Best's Credit Rating Action


Latest News

More from Best’s News


Trending