AM Best Revised Outlooks to Positive for Aspire General in California

AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of Aspire General Insurance Co. in Rancho Cucamonga, California.

The ratings reflect Aspire General’s balance sheet strength, which AM Best said it assesses as adequate, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.

“The revised outlooks to positive from stable reflect Aspire General’s improved underwriting and operating performance in recent years starting in 2018, largely driven by management’s numerous initiatives to enhance profitability, namely the termination of agencies with excessive loss ratios and the implementation of rate increases,” an AM Best release on the revision stated. “Additionally, the company is technologically advanced for its size and utilizes predictive analytics in its decision-making process with a heavy emphasis on managing loss frequency. Furthermore, data analytics and point-of-sale tools are used to target profitable segments and swiftly react to new business rate needs. Lastly, ownership has contributed capital to Aspire General in recent years to support new business growth for surplus relief.”

Partially offsetting the positive factors are Aspire General’s “above-average underwriting leverage,” its limited scale of operations and high reinsurance dependence, according to AM Best.

Topics California Trends AM Best