{"id":769375,"date":"2023-07-12T13:36:01","date_gmt":"2023-07-12T17:36:01","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-affirms-credit-ratings-of-subsidiaries-of-old-republic-international-corporation\/"},"modified":"2023-07-12T13:36:01","modified_gmt":"2023-07-12T17:36:01","slug":"am-best-affirms-credit-ratings-of-subsidiaries-of-old-republic-international-corporation","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-affirms-credit-ratings-of-subsidiaries-of-old-republic-international-corporation\/","title":{"rendered":"AM Best Affirms Credit Ratings of Subsidiaries of Old Republic International Corporation"},"content":{"rendered":"

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AM Best Affirms Credit Ratings of Subsidiaries of Old Republic International Corporation<\/b><\/p>\n

OLDWICK, N.J.–(BUSINESS WIRE<\/a>)–AM Best<\/b> has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of \u201caa-\u201d (Superior) of the members of Old Republic Insurance Companies (Old Republic). Concurrently, AM Best has affirmed the FSR of A+ (Superior) and the Long-Term ICRs of \u201caa-\u201d (Superior) of Old Republic National Title Insurance Company (Tampa, FL) and American Guaranty Title Insurance Company (Oklahoma City, OK) (collectively referred to as Old Republic Title Insurance Group [ORTIG]). At the same time, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of \u201ca+\u201d (Excellent) of Old Republic Insurance Company of Canada (Old Republic Canada) (Hamilton, Ontario). In addition, AM Best has affirmed the FSR of B++ (Good) and the Long-Term ICR of \u201cbbb+\u201d (Good) of Old Republic Life Insurance Company (ORL) (Chicago, IL). The outlook of these Credit Ratings (ratings) is stable. All companies are subsidiaries of Old Republic International Corporation (ORI) [NYSE: ORI].<\/p>\n

\nThe ratings of Old Republic, which is considered the lead rating unit in the Old Republic International Corporation enterprise, reflect its balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).<\/p>\n

\nOld Republic is the flagship group for the Old Republic Insurance enterprise and one of the top 35 property\/casualty insurers in the United States. The group is made up of commercial lines insurance carriers that focus predominantly on providing liability insurance for specific sectors of the North American economy. Major lines of business include workers\u2019 compensation, commercial auto and general liability. Old Republic benefits from its expertise within the alternative risk transfer market and specialty commercial segments, as well as historically solid profitability, expertise in its respective individual business specialties and well-recognized franchises. The company continues to have a very modest exposure to asbestos liabilities.<\/p>\n

\nThe ratings of ORTIG reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM. The ratings of ORTIG also reflect the implicit support the group receives from its position in the Old Republic enterprise and its strategic role within the organization.<\/p>\n

\nThe ratings of ORTIG recognize its strong reserving practices. With a majority of ORTIG\u2019s premiums and fees generated through independent agents, a significant portion of its expenses are variable. This enables ORTIG to manage down cycles better, as fixed costs generally are lower for that distribution channel. AM Best expects that ORTIG will continue to generate underwriting and operating results that are in line with its title competitors, despite the impact of higher mortgage interest rates, which has led to a steep drop in mortgage originations and refinance activity. AM Best expects that ORTIG will remain a significant contributor to the overall profitability of the Old Republic International Corporation enterprise, while maintaining the strongest level of risk-adjusted capitalization in the intermediate term, as measured by Best\u2019s Capital Adequacy Ratio (BCAR). The title group continues to be integral to the overall organization, with common branding and talent synergies, as well as complementary ERM programs.<\/p>\n

\nThe ratings of Old Republic Canada reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM.<\/p>\n

\nThe ratings of Old Republic Canada recognize the synergies it gains as an affiliate of Great West Casualty Company, as well as its accident and sickness business. Partially offsetting these positive rating factors are the company\u2019s limited product offering and challenging market environment in Canada.<\/p>\n

\nThe ratings of ORL reflect its balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, limited business profile and appropriate ERM.<\/p>\n

\nThe ratings of ORL also reflect its risk-adjusted capitalization, which is assessed at the strongest level, as measured by BCAR. Invested asset holdings are of good credit quality, as the portfolio is designed to minimize credit default risk rather than maximizing yield. Earnings have been positive in recent years. Due to the small size of the ORL\u2019s reserves, any increase in claims or mortality could cause a material change to ORL\u2019s earnings, but should not materially impact ORI. Premiums have declined over the past several years, as the closed-term block premiums run off, and the occupational accident premiums trend lower. The company\u2019s business profile consists of a closed block of term life insurance and the actively marketed occupational accident line. Despite its modest size, ORL is important strategically to the Old Republic organization.<\/p>\n

\nThe FSR of A+ (Superior) and the Long-Term ICRs of \u201caa-\u201d (Superior) have been affirmed, each with a stable outlook, for the following members of Old Republic Insurance Companies:<\/p>\n