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) in Springfield, Ill.
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.
Source: A.M. Best
Topics Excess Surplus Illinois AM Best
Was this article valuable?
Here are more articles you may enjoy.
As Rates Rise, Majority of Homeowners Say Insurance Industry Is in Crisis: Survey 
BlackSuit Cybercrime Gang Blamed in CDK Hack That Roiled Car Dealers 
‘Extremely Dangerous’ Hurricane Beryl Takes Aim at Caribbean 
Home Insurance at $10,000 a Year Shows California Buyers’ Pain 
