A.M. Best Co. has removed from under review with negative implications and downgraded the financial strength rating to D (Poor) from B (Fair) and issuer credit rating to “c” from “bb” of San Antonio Indemnity Co. of San Antonio, Texas.
The outlook assigned to both ratings is negative. Concurrently, A.M. Best has withdrawn the ratings as the company has requested to no longer participate in A.M. Best’s interactive rating process.
San Antonio Indemnity is an affiliate of San Antonio-based property/casualty insurance wholesaler, Quirk & Co., according to information on that company’s website.
The rating actions take into account San Antonio Indemnity’s financial results through June 30, 2012, and consider its deteriorated and unfavorable risk-adjusted capitalization as a result of underwriting losses in recent years due to frequent and severe weather events, loss and loss adjustment expense reserve strengthening and significant premium growth.
The rating actions also follow A.M. Best’s downgrading and placing under review with negative implications the ratings of San Antonio Indemnity on April 27, 2012.
At that time, the under review status was applied to the ratings pending the resolution of San Antonio Indemnity’s capital-raising initiatives. As of June 30, 2012, the company has not executed these initiatives, Best said.
Topics AM Best
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