AM Best Affirms Credit Ratings of The Hartford Steam Boiler Group’s Members
AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa+” (Superior) of the members of The Hartford Steam Boiler Group (HSB). The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the companies and their ratings.)
The ratings reflect HSB’s balance sheet strength, which AM Best assesses as strongest, as well as its very strong operating performance, favorable business profile and very strong enterprise risk management.
HSB maintains risk-adjusted capitalization, which is consistently within the group’s overall strongest balance sheet strength assessment, as measured by Best’s Capital Adequacy Ratio (BCAR). HSB’s very strong operating performance assessment is supported by consistently excellent profitability metrics, which have outperformed AM Best’s commercial property composite by a wide margin for a prolonged period of time. The very strong overall operating performance is primarily driven by superior underwriting returns and enhanced by a steady stream of investment income. HSB’s five-year average combined ratio of 83.0% significantly outperforms the 90.3% average posted by the commercial property composite over the same period. Underwriting margins continue to be favorable, reflecting continued strong results in the group’s commercial equipment breakdown and cyber protection businesses, home systems protection and service line, despite continued inflationary pressures.
