AM Best Revises Outlook to Positive for Frank Winston Crum Insurance Company – InsuranceNewsNet

ALDWICK, New Jersey—(BUSINESS WIRE)–
AM Best revised the outlook to positive from stable and affirmed the financial strength rating of B++ (Good) and the long-term issuer credit rating of ‘bbb+’ (Good) on Frank Winston Cram Insurance Company (FWCI) (Clearwater, Florida).

The credit rating(s) reflect FWCI’s strong balance sheet, which AM Best rates as strong, as well as its strong operating results, limited business profile and appropriate corporate risk management.

The outlook revision reflects the expectation that corrective actions taken by management will result in favorable reserve development supported by management’s more conservative provisioning practices and the elimination of prior year loss reserve development. In early 2022, the Company completed a loss portfolio transfer where all losses and allocated loss adjustment expenses (ALAE) occur with a loss date on or before December 31, 2019for general liability and on or before December 31, 2020for workers’ compensation were transferred as part of the deal.

FWCI posted solid surplus growth reflecting the positive performance of the insurance company, stable investment income and capital contributions from the parent company. As a result, AM Best expects FWCI to continue to demonstrate strong operating results and the company’s risk-adjusted capitalization to remain at its strongest level as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s limited business profile reflects its geographic concentration, primarily in Florida, and its product concentration, primarily as a guaranteed workers’ compensation and general liability insurance company. FWCI’s ERM program benefits from a comprehensive reinsurance program and incorporates risk concentration management controls into its framework.

This press release refers to the credit ratings that are published on the AM Best website. For all rating information relating to the release and relevant disclosures, including details of the agency responsible for issuing each of the individual ratings set out in this release, please see AM Best’s Recent assessment activity Web page. For additional information on the use and limitations of credit score opinions, please see Guide to Best Credit Ratings. For information on the proper use of Best’s credit ratings, Best’s performance ratings, Best’s preliminary credit ratings, and AM Best’s press releases, see A guide to the proper use of Best’s ratings and reviews.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquarters in United Statesthe company develops business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information visit www.ambest.com.

Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Christine De PalmaARM, AINS, AIS

A financial analyst

+1 908 439 2200, ext. 5649.

[email protected]

Christopher Sharkey
Manager, Public Relations

+1 908 439 2200, ext. 5159

[email protected]

Michael Venice
Senior Financial Analyst

+1 908 439 2200, ext. 5034

[email protected]

Jeff Mango
Managing Director,

Strategic communications

+1 908 439 2200, ext. 5204

[email protected]

Source: AM Best

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