AM Best affirms Centerline ratings

However, the ratings have been withdrawn at the request of the company.

AM Best has affirmed the financial strength rating of B++ (Good) and the long-term issuer credit rating of “bbb+” (Good) of Centerline Insurance Company, which is (headquartered in Knoxville, Tennessee. The outlook of these 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Concurrently, AM Best has withdrawn these ratings as the company has requested to no longer participate in AM Best’s interactive rating process.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 Centerline’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

Effective December 31, 2024, Centerline reverted to a captive insurance company for Watkins Associated Industries, from its recent endeavours to become a traditional commercial insurer, having recently exited the third-party commercial auto liability insurance space. The reduction in premium enabled Centerline’s surplus to support the remaining lines of business within its capital base as evidenced by improved risk-based capitalisation manifested in significantly increased Best’s Capital Adequacy Ratio (BCAR) scores. AM Best expects the captive to return to improved profitability in the near term, better aligning with an adequate operating performance assessment.

AM Best expects Centerline’s risk-adjusted capitalisation, as measured by BCAR, to remain at the strongest level over the medium term, supported by a conservative investment allocation and modest internal capital generation.

The adequate operating performance assessment considers Centerline’s ability to achieve its targeted operating results, primarily driven by underwriting profits from the company’s very profitable per-shipment cargo and trailer insurance products.

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