AM Best Withdraws Credit Ratings of Elan Insurance Group, Inc.
OLDWICK, N.J.--(BUSINESS WIRE)--Dec 15, 2022--
AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of Elan Insurance Group, Inc. (Elan) (St. Thomas, U.S Virgin Islands). The outlook of these Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn these ratings as the company has requested to no longer participate in AM Best’s interactive rating process.
The ratings reflect Elan’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and marginal enterprise risk management.
The ratings affirmation reflects Elan’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), which has strengthened due to the rapid decline in premium as the company completes a re-organization and consolidates its self-insured business to another entity. AM Best notes that while Elan’s BCAR measured at the strongest level, its absolute capital & surplus is modest and has declined as a result of the change in strategy. The company’s premium has rapidly declined in 2022 due to the shift and movement of business to another entity. Elan reported operating and net losses through September 2022 as the premium declines and the company winds down operations. While Elan has reported operating losses in 2020 and 2021, the losses were predominantly due to a management fee. After adjusting for the management fee, Elan would have reported operating gains in 2020 and 2021.
Partially offsetting factors include Elan’s limited business profile as it primarily operated in the U.S. Virgin Islands, representing geographic concentration.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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KEYWORD: EUROPE UNITED STATES NORTH AMERICA NEW JERSEY
INDUSTRY KEYWORD: INSURANCE PROFESSIONAL SERVICES
SOURCE: AM Best
Copyright Business Wire 2022.
PUB: 12/15/2022 04:42 PM/DISC: 12/15/2022 04:42 PM