AM Best Upgrades Issuer Credit Rating of Southern Pioneer Property and Casualty Insurance Company
19 Agosto 2020 - 9:35AM
Business Wire
AM Best has upgraded the Long-Term Issuer Credit Rating
(Long-Term ICR) to “bbb+” from “bbb” and affirmed the Financial
Strength Rating of B++ (Good) of Southern Pioneer Property and
Casualty Insurance Company (Southern Pioneer) (Jonesboro, AR). The
outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Southern Pioneer’s balance sheet strength,
which AM Best categorizes as strong, as well as its adequate
operating performance, limited business profile and appropriate
enterprise risk management (ERM).
The upgrade of the Long-Term ICR reflects favorable trends in
Southern Pioneer’s balance sheet strength, including the strongest
level of risk-adjusted capitalization, as measured by Best’s
Capital Adequacy Ratio (BCAR), and a stabilization of loss
reserves, following management’s efforts to strengthen reserves and
the decision to significantly reduce the Texas garage liability
business. Underwriting leverage metrics also have trended down to
levels in line with the composite, reflective of organic surplus
growth and a capital contribution in 2020, following its
acquisition by Biglari Holdings, Inc. [NYSE: BH]. This new
ownership provides Southern Pioneer with increased financial
flexibility. Southern Pioneer’s operating performance continues to
stabilize, as the company continues to reposition and re-underwrite
its Texas book of business. The company’s limited business profile
reflects its geographically concentrated position. Southern Pioneer
benefits from an appropriate ERM program that supports the
organization’s risk profile.
This press release relates to Credit Ratings that have been
published on AM Best’s website. For all rating information relating
to the release and pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent Rating
Activity web page. For additional information regarding the use and
limitations of Credit Rating opinions, please view Guide to Best’s
Credit Ratings. For information on the proper media use of Best’s
Credit Ratings and AM Best press releases, please view Guide for
Media - Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in New York, London,
Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more
information, visit www.ambest.com.
Copyright © 2020 by A.M. Best Rating
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Steven DeLosa Financial Analyst +1 908 439
2200, ext. 5959 steven.delosa@ambest.com
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Michelle Baurkot Director +1 908 439 2200, ext.
5314 michelle.baurkot@ambest.com
Jim Peavy Director, Public Relations +1 908 439
2200, ext. 5644 james.peavy@ambest.com
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