KBRA Affirms Rating For American Traditions Insurance Company
15 Dec 2023 | New York
KBRA affirms the BBB Insurance Financial Strength Rating (IFSR) for American Traditions Insurance Company. The Outlook is Stable.
The rating reflects American Traditions Insurance Company’s (“ATIC” or “American Traditions”) experienced management team with a focused strategy, consistent profitability at the managing general agent affiliate which enhances financial flexibility and operational stability at American Traditions, conservative asset portfolio with low investment risk, and a strong local market presence with a well-established distribution network. Balancing these strengths are the company’s geographic and earnings concentration which necessitates a dependence on reinsurance and exposes it to event risk, moderately weak to adequate risk-based capitalization, and elevated premium leverage. Further, recent losses have been driven by natural catastrophes and elevated storm frequency, though the company has revamped exposure management tools, tightened underwriting guidelines, and implemented rate increases, which has led to favorable trends in attritional losses. Liquidity has been challenged by elevated storm and catastrophe activity across the last twelve months, though historical trends have been favorable.
American Traditions, headquartered and domiciled in Florida, is a catastrophe exposed carrier primarily writing personal residential homeowners’ coverage, including mobile homeowners, and related coverages exclusively within the state. Policies are marketed and sold through an affiliate, TJ Jerger MGA, LLC (TJMGA).
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