{"id":836672,"date":"2025-04-11T15:40:06","date_gmt":"2025-04-11T19:40:06","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-affirms-credit-ratings-of-subsidiaries-of-old-republic-international-corporation-upgrades-credit-ratings-of-old-republic-life-insurance-company\/"},"modified":"2025-04-11T15:40:06","modified_gmt":"2025-04-11T19:40:06","slug":"am-best-affirms-credit-ratings-of-subsidiaries-of-old-republic-international-corporation-upgrades-credit-ratings-of-old-republic-life-insurance-company","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-affirms-credit-ratings-of-subsidiaries-of-old-republic-international-corporation-upgrades-credit-ratings-of-old-republic-life-insurance-company\/","title":{"rendered":"AM Best Affirms Credit Ratings of Subsidiaries of Old Republic International Corporation; Upgrades Credit Ratings of Old Republic Life Insurance Company"},"content":{"rendered":"

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AM Best Affirms Credit Ratings of Subsidiaries of Old Republic International Corporation; Upgrades Credit Ratings of Old Republic Life Insurance Company<\/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). The outlook of these Credit Ratings (ratings) is stable.\n<\/p>\n

\nIn addition, AM Best has upgraded the FSR to A- (Excellent) from B++ (Good) and the Long-Term ICR to \u201ca-\u201d (Excellent) from \u201cbbb+\u201d (Good) of Old Republic Life Insurance Company (ORL) (Chicago, IL). The outlook of these ratings has been revised to stable from positive. All companies are subsidiaries of Old Republic International Corporation (ORI) [NYSE: ORI]. (See below for a detailed listing of the companies and ratings for the members of Old Republic.)\n<\/p>\n

\nThe ratings of Old Republic, which is considered the lead rating unit in the ORI 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).\n<\/p>\n

\nOld Republic is the flagship group for the Old Republic Insurance enterprise and one of the top 50 property\/casualty insurers in the United States. The group is made up of commercial lines insurance carriers that focus on specific sectors in the North America economy. The group\u2019s largest lines of business include commercial auto and workers\u2019 compensation; however, it continues to expand product capabilities beyond the traditional focus within these lines. 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 organization continues to have very modest exposure to asbestos liabilities.\n<\/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.\n<\/p>\n

\nThe ratings of ORTIG recognize its strong reserving practices and continued profitability. 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 insurance competitors. AM Best expects that ORTIG will remain a significant contributor to the overall profitability of the ORI enterprise, while maintaining the strongest level of risk-adjusted capitalization in the intermediate term, as measured by Best\u2019s Capital Adequacy Ratio (BCAR). ORTIG continues to be integral to the overall organization, with common branding and talent synergies, as well as complementary ERM programs.\n<\/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. The ratings of Old Republic Canada also reflect its strategic importance within the Old Republic enterprise.\n<\/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 businesses. Partially offsetting these positive rating factors are the company\u2019s limited product offering and the challenging market environment in Canada.\n<\/p>\n

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

\nThe ratings upgrade for ORL reflects the sustained favorable operating performance of the company, driven by positive underwriting results and increased net investment income in recent years. The ratings of ORL recognize 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. The company\u2019s business profile consists of a closed block of term life insurance and the actively marketed occupational accident line. Premiums have declined over the last several years, as closed term premiums run off and as occupational accident direct premiums have trended lower. Despite its modest size, ORL is important strategically to the Old Republic organization.\n<\/p>\n

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