A, A (Excellent) has a Financial Power Rating Rating and Dover, Del’in Auto-Owners Specialty Insurance Company (AOSIC) has a long-term issuer credit rating.
These ratings reflect the balance sheet strength of AOSIC, A.M. It is best categorized as very strong, adequate business performance, very limited business profile and appropriate corporate risk management.
AOSIC is a shell company that plans to provide more and more lines to small and medium-sized commercial businesses in North Carolina. Adjusted capitalization supports the business plan, which includes moderate premium growth projections. In addition, the company is managed by a management team with a register that produces favorable business results at its sister company, Atlantic Casualty Insurance Company, and has knowledge of the excess lines of commercial property and casualty. These positive rating factors are partially offset by the expected intensity of unacceptable business in a given situation.
The assessments are based on AOSIC’s larger, stronger-than-life insurance company, Lansing, Mich. It also reflects the benefits of being a built-in Auto-Owners Insurance Company. On January 1, 2016, Auto-Owners took over AOSIC, formerly Little River Insurance Company and Atlantic Casualty.
The outlook reflects the management’s recent projections for its moderate operating profits and the expectation that management will work in line with the business plan presented to A.M. Best.
Writing or operating performance, A.M. Capital expenditure adjusted to best expectations or risk worsens significantly from the expected levels. AOSIC’s ratings may be adversely affected if the relationship with Auto Owners and its support is no longer guaranteed to increase the rating anymore.
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