The “A-” financial strength rating (FSR) on General Agents Group, Oklahoma City, was lowered to “B++” by A.M. Best Co. The downgrade comes after a fourth-quarter and year-end 2000 financial review of the group by A.M. Best, which included additional deterioration in operating performance; greater dependence on reinsurance and costly outside capital to enhance capitalization; and significant demand on operating subsidiaries to fund parent (GAINSCO Inc.) obligations among the major rating factors. A negative outlook was assigned, reflecting A.M. Best’s opinion that the group may experience near-term difficulties restoring earnings to appropriate levels. However, the rating action also takes into account the group’s adequate capitalization and management efforts towards achieving a strong balance sheet and improved operating results.
Subsidiaries affected by the downgrade are General Agents Ins. Co. of America; MGA Ins. Co. Inc.; GAINSCO County Mutual; and Midwest Casualty Ins. Co.
Topics Agencies
Was this article valuable?
Here are more articles you may enjoy.
Wall Street’s Top Regulator Faces Worsening Battle in Wake of Supreme Court Ruling 
Big ‘I’ Report: Independent Agency Channel Placed 62% of Premiums in 2023 
Coverage Needed: Hundreds of Thousands in SE Now in Flood Zones With New Maps 
Microsoft Tells Texas Agencies They Were Exposed in Russian Hack From This Issue
