AM Best revises the prospects for stable for the insurance company Southern Vanguard – InsuranceNewsNet

OLDWICK, New Jersey— (BUSINESS TEL) –
AM Best revises the outlook from stable to negative and reaffirms the financial strength rating of A- (excellent) and the issuer’s long-term credit rating of “a-” (excellent) of Southern Vanguard Insurance Company (SVIC) (Houston, Texas).

Credit ratings (ratings) reflect the strength of SVIC’s balance sheet, which AM Best as very strong, as well as adequate operating results, a limited business profile and appropriate enterprise risk management (ERM).

The revised prospects to stable from negative reflect the improved financial leverage of SVIC’s ultimate parent, InsVest Special Partner LLC, and AM Best ‘s expectations that the organization’ s financial leverage measures will continue to improve in the interim, while SVIC continues to maintain a very strong level of balance sheet strength along with profitable operational efficiency. The improvement in SVIC’s financial leverage was driven by a partial repayment of the debt, combined with an increase in capital. As a result, financial leverage and coverage ratios (as of the end of 2021) are within AM Best’s rating guidelines.

The assessment of AM Best’s balance sheet as very strong is supported by the risk-adjusted capitalization of SVIC, which is at its strongest level, measured by Best’s Capital Adequacy Ratio (BCAR), together with a positive increase in the surplus of policyholders in the last five years, which is offset in part by operating scale constraints and relatively high gross insurance leverage. AM Best considers SVIC ‘s business profile to be limited due to the company’ s concentration in Texas with a small percentage in Arizona, together with a concentration of products in the business lines of personal property. SVIC’s ERM program is considered appropriate for its size and scope as a personal property author.

This press release refers to the credit ratings that are published on the AM Best website. For all rating information related to the issue and related disclosures, including details of the service responsible for issuing each of the individual ratings listed in this issue, please see AM Best’s Recent rating activity Web page. For more information on the use and limitations of credit rating opinions, please see Best Credit Rating Guide. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessment and AM Best Press Releases, please see A guide to the proper use of Best ratings and ratings.

AM Best is a global credit rating agency, news publisher and data analysis provider specializing in the insurance industry. Based in United Statesthe company operates 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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Brian O’Lart

director

+1 908 439 2200, ext. 5138

brian.o ‘[email protected]

Richard Athanasio
Chief Executive Officer

+1 908 439 2200, ext. 5432

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Christopher Sharkey
Manager, Public Relations

+1 908 439 2200, ext. 5159

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Jeff Mango
Managing Director,

Strategic communications

+1 908 439 2200, ext. 5204

[email protected]

Source: AM Best

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