{"id":918992,"date":"2025-12-11T15:08:07","date_gmt":"2025-12-11T20:08:07","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-affirms-credit-ratings-of-american-financial-group-inc-and-its-key-operating-subsidiaries-2\/"},"modified":"2025-12-11T15:08:07","modified_gmt":"2025-12-11T20:08:07","slug":"am-best-affirms-credit-ratings-of-american-financial-group-inc-and-its-key-operating-subsidiaries-2","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-affirms-credit-ratings-of-american-financial-group-inc-and-its-key-operating-subsidiaries-2\/","title":{"rendered":"AM Best Affirms Credit Ratings of American Financial Group, Inc. and Its Key Operating Subsidiaries"},"content":{"rendered":"

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AM Best Affirms Credit Ratings of American Financial Group, Inc. and Its Key Operating Subsidiaries<\/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 ICR) of \u201caa-\u201d (Superior) of Great American Insurance Company and its pooling affiliates, collectively referred to as Great American Insurance Companies (Great American). Concurrently, AM Best has affirmed the Long-Term ICR of \u201ca-\u201d (Excellent) and the Long-Term Issue Credit Ratings (Long-Term IRs) of American Financial Group, Inc. (AFG) [NYSE: AFG]. The outlook of these Credit Ratings (ratings) is stable.\n<\/p>\n

\nAt the same time, AM Best has affirmed the FSR of A+ (Superior) and the Long-Term ICRs of \u201caa-\u201d (Superior) of the property\/casualty (P\/C) members of the Great American Contemporary Pool (collectively, Great American Contemporary). The outlook of these ratings is stable. The Republic companies within Great American Contemporary are headquartered in Calabasas, CA, and most Bridgefield companies are headquartered in Lakeland, FL.\n<\/p>\n

\nAM Best also has affirmed the FSR of A+ (Superior) and the Long-Term ICRs of \u201caa-\u201d (Superior) of the P\/C members of the Mid-Continent Group (Mid-Continent) (headquartered in Tulsa, OK). Additionally, AM Best has affirmed the FSR of A+ (Superior) and the Long-Term ICRs of \u201caa-\u201d (Superior) of National Interstate Insurance Company (headquartered in Richfield, OH) and its affiliates (collectively referred to as National Interstate). The outlook of these ratings is stable.\n<\/p>\n

\nAll companies are subsidiaries of AFG and headquartered in Cincinnati, OH, unless otherwise specified. (Please see below for a detailed listing of the P\/C companies and ratings.)\n<\/p>\n

\nThe ratings of Great American reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM). Great American\u2019s ratings are aided by risk-adjusted capitalization assessed at the very strong level, as measured by Best\u2019s Capital Adequacy Ratio (BCAR), with minimal volatility over time. Great American also has shown consistent operating performance on par with peers similarly assessed at the strong level, which is reflective of its profitable underwriting results that are supported by underwriting focus and their vast expertise within a diversified product portfolio and business profile through its multiple distribution platforms, in addition to significant investment income. An offsetting factor is a high dividend payout ratio to the parent company in alignment with the capital management strategies of the parent company.\n<\/p>\n

\nThe ratings of Great American Contemporary reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate ERM. The ratings of Great American Contemporary also reflect rating lift from the lead rating unit, Great American, based on historical capital support and shared services. The combined pool member entities maintain risk-adjusted capitalization currently at the strongest level, as measured by BCAR, which is supported by consistently strong operating performance over the past five years that has outperformed composite peers. Despite its narrow focus in the workers\u2019 compensation segment, the group is among the market leaders in its focused geographic areas; in particular, the group\u2019s members rank as the second-largest workers\u2019 compensation provider in Florida through an extensive network of independent agents and advisers. The group remains concentrated in Florida and California, which exposes it to potential regulatory and legislative risks. The group members also maintain higher underwriting leverage than peers with a high dividend payout to its parent, which has tempered surplus growth.\n<\/p>\n

\nThe ratings of Mid-Continent 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 also reflect rating lift from the lead rating unit, Great American, recognizing the historical support and services. Mid-Continent\u2019s ratings are supported by risk-adjusted capitalization assessed at the strongest level, as measured by BCAR, and consistent ability to maintain balance sheet metrics with positive organic operating earnings. These factors are offset by Mid-Continent\u2019s more-concentrated industry segments in construction and energy adjacent segments, as well as its limited geographic profile, which exposes it to increased regulatory, legislative and competitive risks.\n<\/p>\n

\nThe ratings of National Interstate reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate ERM. The ratings also reflect lift from the lead rating unit, Great American, recognizing the historical support and services. National Interstate\u2019s ratings are supported by risk-adjusted capitalization assessed at the strongest level, as measured by BCAR, a prudent investment portfolio and high quality of reinsurance partners. The group maintains significant expertise in its niche-focused market of captive risk transfer products for the transportation market. Despite this limited focus, the group has demonstrated consistent favorable operating results on par with peers through continued strong underwriting results. Offsetting factors around this limited focus expose the group to increased regulatory, legislative and competitive risks.\n<\/p>\n

\nEach of the groups discussed above also benefits from the financial flexibility provided by AFG, which has additional liquidity sources given its access to capital markets and lines of credit. AM Best anticipates that earnings and cash flows from AFG\u2019s operating subsidiaries will allow it to support risk-adjusted capitalization at the operating level should the need arise, which has been demonstrated in the past. At the same time, surplus growth at each group has been limited over the past five years by the payment of significant stockholder dividends to AFG. These dividends vary based on capital requirements at the various subsidiaries. AFG\u2019s financial leverage is maintained at between 25-30%, which is within AM Best\u2019s criteria tolerance levels and continues to be supportive of the ratings. AFG also maintains strong coverage ratios that remain more than sufficient to the ratings.\n<\/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 Great American Insurance Company and its following pooled affiliates:\n<\/p>\n