AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of Buckeye State Mutual Insurance Company and its affiliate, Home and Farm Insurance Company. Both companies are domiciled in Piqua, Ohio and are referred to as Buckeye.
The Credit Ratings (ratings) reflect Buckeye’s balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, limited business profile and marginal enterprise risk management.
Buckeye’s revised outlooks to negative from stable reflect a trend of underwriting losses driven by fire and weather events, which have contributed to three straight years of surplus deterioration and a corresponding decline in overall risk-adjusted capitalization. This trend has continued through the first half of 2024, and as such, underwriting leverage metrics have deteriorated and begun to compare unfavorably to the composite.
AM Best said Buckeye’s management team has implemented initiatives to improve profitability, which include aggressive rate increases, limitations on new business, tightened underwriting standards, increased deductibles and proactive agency management.
While Buckeye has undertaken these initiatives to improve its capital position and underwriting performance, negative rating action could occur following a continued decline in risk-adjusted capitalization or a return to adverse reserve development that weakens overall balance sheet strength.
Source: AM Best
Was this article valuable?
Here are more articles you may enjoy.
Vanderbilt Plans $520 Million Palm Beach Campus, Tapping into Migration of Wealth 
Fed’s Powell Says ‘Time Has Come’ to Cut Interest Rates 
Frequency of Deadly Hurricanes Has Jumped 300% 
Australians Can Now Legally Ignore Work Calls, Emails After Hours 
