AM Best Upgrades Issuer Credit Rating of Quasar Insurance Company, Inc.
AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” (Good) from “bbb” (Good) and affirmed the Financial Strength Rating of B++ (Good) of Quasar Insurance Company, Inc. (Quasar) (Mount Pleasant, SC). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Quasar’s balance sheet strength, which AM Best assesses as very 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 Quasar’s improved balance sheet strength fundamentals, driven by organic surplus growth and supportive risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). Supplemental insurance purchased at the affiliated insured is expected to partially mitigate high limits relative to the company’s surplus level. Further, Quasar continues to maintain high quality capital and assets, along with low leverage metrics, and appropriate liquidity.
AM Best assesses Quasar’s operating performance as adequate, driven by solid underwriting and operating metrics in each of the past five years. Earnings capacity continues to be driven by the needs of the affiliated entity, DSLD Homes (DSLD). AM Best assesses Quasar’s business profile as limited mainly due to the concentration of risk exposures in Louisiana and neighboring states along with the vast majority of premium generated by general liability policies. The company’s ERM practices are appropriate as management is keenly aware of the risk tolerance and appetite in place of affiliated risk.
