Ratings agency AM Best has downgraded the financial strength rating (FSR) to B (Fair) from B+ (Good) of Security America Risk Retention Group (SARRG), a risk retention group offering general and professional liability coverage based in Burlington, Vermont.
The outlook of the FSR has been revised to stable from negative, and AM Best has concurrently withdrawn the ratings as SARRG has requested to no longer participate in the ratings agency's interactive credit rating process.
SARRG's ratings reflect its balance sheet strength, which AM Best categorises as adequate, as well as its marginal operating performance, limited business profile and marginal enterprise risk management. AM Best also said SARRG's product concentration presents a high degree of competition, although the company is registered in all US states.
While the risk-adjusted capitalisation is currently strong, the ratings agency said it had diminished in recent years. Additionally, AM Best noted SARRG suffered adverse loss reserve development and unfavourable profitability measures.
SARRG, Risk Retention Group, AM Best, Ratings, Vermont, North America