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A.M. Best Affirms Credit Ratings of Subsidiaries of Old Republic International Corporation
At the same time,
The ratings of ORINSCO reflect its balance sheet strength, which
Additionally, the ratings of ORINSCO reflect the group’s position as the flagship carrier within the
The ratings of BITCO Insurance Companies reflect its balance sheet strength, which
The ratings of BITCO Insurance Companies also reflect the conservative balance sheet, evidenced by consistently favorable prior accident year development, and solid overall liquidity. The ratings also reflect the group’s historical operating performance, which benefits from its loss control and risk management expertise as a specialty underwriter of risk transfer programs for the construction, oil and gas extraction and forest products industries. The group also benefits as a core member of the
These positive rating factors are offset partially by the ongoing challenging workers’ compensation and commercial automobile liability markets, given increasing competition and higher loss trends, as well as the company’s concentration in industries exposed to U.S. economic cycles. To a lesser degree, BITCO Insurance Companies also maintain above-average common stock leverage.
The ratings of Great West reflect its balance sheet strength, which
Great West’s risk-adjusted capitalization is at the strongest level and supported by its conservative balance sheet, trend of strong underwriting and operating profitability, and its specialty niche underwriting expertise as a leading commercial automobile insurer. These positive rating factors are offset partially by its business concentration in commercial trucking, which has experienced increases in severe losses. The company maintains an above-average common stock investment portfolio leverage position.
The ratings of ORGENCO reflect its balance sheet strength, which
ORGENCO’s historically strong operating performance benefits from the profitable reinsurance arrangements with its affiliates and the ceding commissions received from affiliates. These positive rating factors are offset partially by the company’s concentrated source of business and its above-average common stock leverage position.
The ratings of PMA reflect its balance sheet strength, which
The ratings of PMA reflect its improving underwriting results following the extensive re-underwriting measures instituted subsequent to its purchase by
The ratings of ORTIG reflect its balance sheet strength, which
The ratings of ORTIG also recognize its strong liquidity and reserving practices, which remain among the most prudent in the title industry. While the group has increased substantially its premium volume in recent years, operating results have continued to trend favorably as a result of its improved underwriting performance. The increase in premium volume has also enhanced the group’s presence, allowing it to become more competitive. However, an offsetting rating factor is the group’s higher underwriting leverage measures due to the rapid increase in premium volume over the past five years. However,
The ratings of Old Republic Canada reflect its balance sheet strength, which
The ratings of Old Republic Canada also acknowledge the synergies it realizes as an affiliate of Great West and other affiliates. Partially offsetting these positive rating factors are the company’s narrow product offering, the current soft market conditions and challenging judicial environment in
The ratings of
The ratings of
The ratings of ORSC reflect its balance sheet strength, which
The ratings of ORSC reflect its strict underwriting controls and conservative reinsurance protection and loss reserving practices. These strengths are offset by ORSC’s elevated underwriting expense ratio and increased variability of losses recognized over the past few years.
The ratings of Old Republic Life reflect its balance sheet strength, which
The ratings for ORL are based on the company’s risk-adjusted capitalization being at the strongest level, favorable liquidity and overall good credit quality of invested assets. Earnings in recent years have been positive but fluctuating. Premium trends reflect emphasis on group disability product sales along with declining premiums from its run-off ordinary life business. While ORL is considered by management to be important in the group’s overall strategy, the business profile is modest, in which only one line of business, group disability, is actively sold to policyholders of an affiliated company.
There have been concerns in recent years regarding the uncertainties associated with ORI’s run-off of its mortgage insurance and consumer credit indemnity insurance books of business. These concerns have moderated given the recent improvement in ORI’s run-off books of business, improved consolidated earnings and solid overall liquidity, as well as A.M. Best’s expectation that the run-off books of business will continue to play less of a role in relation to ORI’s continuing operations. Additionally, ORI maintains relatively strong interest coverage and modest debt-to-total capital ratios.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and
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Darian Ryan,+1 908 439 2200, ext. 5449
Senior Financial Analyst—P/C
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
Frank Walko,+1 908 439 2200, ext. 5072
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations