However, BIG’s operating performance assessment reflects its strong overall underwriting profitability and net investment income that has produced double-digit pre-tax operating results and returns on equity, which compare favorably with AM Best’s workers’ compensation composite’s five-year averages at Dec 31, 2021. The group reported declining operating results in 2021 as a result of several unusual underwriting losses. The group has diversified this credit risk related to ceded reinsurance and has no disputes for reinsurance recoverables deemed uncollectible. However, to mitigate this credit risk, BIG holds approximately 80% in collateral on a funds-held basis or requires collateral in a trust or as a letter of credit from reinsurers not authorized in the insurance carrier’s state of domicile to secure recoverable balances. The ratings of BIG reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).īIG’s balance sheet strength assessment reflects a highly rated, diversified fixed-income portfolio and consistent loss reserve discipline offset by elevated net underwriting leverage and a sound, albeit declining, liquidity position, The group has significant reinsurance dependence that subjects it to material counterparty credit risk. The outlook of these Credit Ratings (ratings) is stable. (Delaware) (Trean Insurance), the ultimate parent of BIG. Concurrently, AM Best has affirmed the Long-Term ICR of “bbb” (Good) of Trean Insurance Group, Inc. ![]() These companies are collectively referred to as Benchmark Insurance Group (BIG). AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a” (Excellent) of Benchmark Insurance Company (headquartered in Wayzata, MN), Benchmark Specialty Insurance Company (Little Rock, AR), American Liberty Insurance Company (Provo, UT) and 7710 Insurance Company (Summerton, SC).
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