Press Release - MAY 15, 2018
A.M. Best Revises Outlooks to Positive for Benchmark Insurance Company
FOR IMMEDIATE RELEASE
OLDWICK - MAY 15, 2018
The Credit Ratings (ratings) of Benchmark reflect its balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
The revised outlooks to positive from stable are based on Benchmark’s strong operating performance and increased risk-adjusted capitalization driven by steadily increasing underwriting earnings and net investment income. Benchmark’s balance sheet strength is supported by risk-adjusted capitalization being at the strongest level, favorable loss reserving trends in recent years, a prudent investment portfolio and strong liquidity and cash flow measures.
As a result, the company’s five-year average pre-tax and total returns on revenue and equity exceed composite averages as does its five-year average combined and operating ratios. These positive rating factors generated a double-digit cumulative average growth in policyholders’ surplus over the most recent five-year period. The strong underwriting performance is reflective of management’s conservative risk selection being limited to small and mid-sized specialty programs, primarily workers’ compensation business. Benchmark is licensed in 49 states and provides risk sharing and serves as a vehicle for companies to broadly distribute their products.
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.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.