AM Best has downgraded the Financial Strength Rating of American Transportation Group Insurance Risk Retention Group (ATGI) to C++ (marginal) from B (fair), before withdrawing its rating altogether.
AM Best took the action, and ATGI responded by indicating it no longer wished to participate in AM Best’s interactive rating process. AM Best has therefore withdrawn its ratings. AM Best,
AM Best had categorised the RRG’s balance sheet strength as very weak, noting a material erosion this year, relative to its initial business plan. “Annualised growth in net written premiums and loss and loss adjustment expense reserves has outpaced growth in policyholders’ surplus significantly over the past year,” AM Best said.
It added: “Operating performance over the past year fell below expectations according to ATGI’s initial business plan but remained broadly consistent with what AM Best considered to be an adequate operating performance assessment. The limited business profile assessment is driven largely by ATGI’s product concentration in the commercial automobile insurance industry, which exposes results to potential competitive, judicial, economic, or regulatory challenges.”
AM Best, American Transportation Group Insurance Risk Retention Group, ATGI