White Mountains Insurance And Its Units Rated By A.M. Best
Zacks Investment Research | Nov 15, 2016 09:02PM ET
White Mountains Insurance Group, Ltd. (NYSE:WTM) and its units recently received rating action from credit rating giant, A.M. Best. The rating agency affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a” of Atlantic Specialty Insurance Company and its four U.S. reinsured units. Atlantic Specialty Insurance and its units are collectively called OneBeacon Insurance Group (“OneBeacon”).
In addition, the rating agency affirmed the Long-Term ICRs of “bbb”, the Long-Term Issue Credit Ratings (Long-Term IR) on issued securities as well as the indicative Long-Term IRs on the shelf registrations of OneBeacon Insurance Group, Ltd. and OneBeacon U.S. Holdings, Inc. Concurrently, the credit rating giant affirmed the Long-Term ICR of “bbb” of White Mountains Insurance. The outlook of all the aforementioned credit ratings remained stable.
The ratings affirmation of OneBeacon came on the back of its solid risk-adjusted capitalization, and strong earnings over time through favorable underwriting and robust operating performance. The ratings also account for the financial flexibility of both OneBeacon U.S. Holdings, Inc. and OneBeacon Insurance Group, Ltd.
Robust financial flexibility and strong operational performance by the operating subsidiaries of OneBeacon Insurance Group, Ltd., OneBeacon U.S. Holdings, Inc. and White Mountains Insurance account for the ratings reiteration. Moreover, financial leverage and coverage ratios are well within the guidelines of the rating agency.
However, OneBeacon might see ratings downgrade in case of adverse development of loss reserves, dividend payments that have limited surplus growth, and elevated level of equity investments that might dilute the company’s earnings.
Rating affirmations or upgrades from credit rating agencies play an important role in retaining investors’ confidence in the stock as well as maintaining credit worthiness in the market. Hence, it is expected that such ratings will help the company write more business, going forward.
WHITE MTN INS Price
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.