AP NEWS

AM Best Removes From Under Review With Developing Implications and Affirms Credit Ratings of T.H.E. Insurance Company

February 7, 2019

OLDWICK, N.J.--(BUSINESS WIRE)--Feb 7, 2019--AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of T.H.E. Insurance Company (T.H.E.) (New Orleans, LA). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect T.H.E.’s balance sheet strength, which AM Best categorizes as strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management (ERM). Additionally, the company’s ratings benefit from the financial support provided by the XL group, which became part of AXA S.A. following completion of the acquisition in September 2018.

T.H.E.’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is categorized as strong, and AM Best expects it to remain at a similar level going forward. Due to material reserves strengthening, the company reported high combined ratios of 139.3% and 142.7% in 2016 and 2017, respectively. For the first nine months of 2018, T.H.E. generated an underwriting profit of USD 5.3 million and a combined ratio of 80.6%, and AM Best expects the company to return to profitability for the full year. T.H.E. provides property/casualty insurance coverage for the amusement and entertainment industry, and its ERM is centralized at the group level.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view .

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit for more information.

Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20190207005554/en/

CONTACT: Filippo Novella

Financial Analyst

+1 908 439 2200, ext. 5486

filippo.novella@ambest.com

Mariza Costa

Senior Financial Analyst

+1 908 439 2200, ext. 5154

mariza.costa@ambest.com

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: UNITED STATES NORTH AMERICA NEW JERSEY

INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE INSURANCE

SOURCE: AM Best

Copyright Business Wire 2019.

PUB: 02/07/2019 10:16 AM/DISC: 02/07/2019 10:16 AM

http://www.businesswire.com/news/home/20190207005554/en

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