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AM Best Affirms Credit Ratings of The Hartford Steam Boiler Group’s Members

February 7, 2019

OLDWICK, N.J.--(BUSINESS WIRE)--Feb 7, 2019--AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa+” of the members of The Hartford Steam Boiler Group (HSB). The outlook of these Credit Ratings (ratings) remains stable. (See below for a detailed listing of the companies.)

The ratings reflect HSB’s balance sheet strength, which AM Best categorizes as strongest, as well as its very strong operating performance, favorable business profile and very strong enterprise risk management (ERM).

HSB’s balance sheet strength assessment is underpinned by its risk-adjusted capitalization being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as its good liquidity, conservative investments allocation and track record of positive reserves development.

The company has a history of very strong operating earnings, evidenced by a five-year average return on equity of 18.6% (2013-2017). For 2018, AM Best expects the company to generate a sound combined ratio of approximately 90%.

HSB has a strong reputation for being a specialist insurer in the U.S. commercial market for boiler and machinery breakdown risks, where it holds a leading market share by premium written. HSB’s business profile also benefits from moderate geographical diversification, which stems from business sourced by the company’s international subsidiaries. ERM is considered to be embedded throughout the whole organization, which has historically put a great focus on loss prevention practices.

The FSR of A++ (Superior) and the Long-Term ICRs of “aa+” have been affirmed with stable outlooks for the following members of The Hartford Steam Boiler Group:

The Hartford Steam Boiler Inspection and Insurance Company The Hartford Steam Boiler Inspection and Insurance Company of Connecticut The Boiler Inspection and Insurance Company of Canada HSB Specialty Insurance Company HSB Engineering Insurance Limited

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/20190207005848/en/

CONTACT: Filippo Novella

Financial Analyst

+1 908 439 2200, ext. 5486

filippo.novella@ambest.comMariza Costa

Senior Financial Analyst

+1 908 439 2200, ext. 5154

mariza.costa@ambest.comChristopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.comJim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: UNITED STATES EUROPE NORTH AMERICA NEW JERSEY

INDUSTRY KEYWORD: PROFESSIONAL SERVICES INSURANCE

SOURCE: AM Best

Copyright Business Wire 2019.

PUB: 02/07/2019 03:55 PM/DISC: 02/07/2019 03:55 PM

http://www.businesswire.com/news/home/20190207005848/en

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