AM Best withdraws Waco's ratings

Rating agency AM Best has withdrawn its ratings of Waco Fire and Casualty Insurance Company, following a request from the company to withdraw from AM Best’s rating process.

AM Best affirmed the Tennessee-based captive’s financial strength rating of B+ (Good) and the issuer credit rating of ‘bbb-’. The outlook for both ratings has been affirmed at stable.

The ratings reflect Waco’s strong risk-adjusted capitalisation and its positive after-tax income posted annually since 2004, according to the rating agency.

AM Best said: “The positive rating factors are partially offset by the company’s high expense ratio, its volatile pre-tax operating return measures and narrow market scope. The outlooks reflect AM Best’s expectation that, despite the variability in operating results seen over the past five years, the company’s risk-adjusted capitalisation will continue to support the current ratings.”