KBRA Affirms Rating for American Traditions Insurance Company
12 Dec 2025 | New York
KBRA affirms the BBB insurance financial strength rating (IFSR) for American Traditions Insurance Company (“ATIC”). The Outlook is Stable.
The rating reflects the company's continued improvement in core underwriting performance, supported by more stable attritional losses, sustained pricing adequacy, and durable benefits from underwriting and form changes, higher wind deductibles, and eligibility tightening. These measures, combined with a substantial decline in litigated claim frequency following Florida’s legislative reforms, have reduced earnings volatility and improved predictability in reported operating results. ATIC also benefits from an experienced management team, strong and longstanding agency relationships, a conservative investment profile, and a stable reserve position with limited volatility in recent years.
Balancing these strengths are ATIC’s concentrated exposure to the Florida property market and elevated gross underwriting leverage of 6.4x at year-end 2024, both of which heighten sensitivity to catastrophe activity and adverse market conditions. The company also remains structurally reliant on reinsurance to protect surplus from severe weather events, and future reinsurance pricing or capacity constraints could pressure earnings or leverage metrics. ATIC’s operating results therefore remain exposed to event-driven volatility despite prudent exposure management and program design.
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