Press Release - AUGUST 11, 2017
A.M. Best Revises Outlooks to Negative for West Virginia National Auto Insurance Company
FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 11, 2017
The revised outlooks are due to West Virginia National Auto’s deteriorating risk-adjusted capitalization from unprofitable operating performance in recent years. Management fell short of projections mainly due to an unfavorable book of business, which ultimately has been non-renewed. Additionally, the company maintains geographic concentration exposing surplus to regulatory, judicial and economic concerns, as well as the cyclical nature of competition altering the market share within its domiciled state.
Partially offsetting these negative rating factors are management’s expertise in West Virginia and the non-standard market, and its ability to react quickly to maintain favorable leverage measures. Historically, results of the core book of business in West Virginia have been stable. Policies are shorter term, and rate changes are quickly felt in the results. Management maintains good relationships with its agency force, and current disruptions have allowed for new agency relationships to form. Also, communication with reinsurance partners allow for changes in quota share agreements in the event that leverage measures are outside of the company’s risk tolerance levels.
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