KBRA Affirms Ratings for WT Holdings, Inc. and Insurance Subsidiaries
18 Aug 2026 | New York
KBRA affirms the BBB+ Insurance Financial Strength Ratings (IFSRs) for Stillwater Insurance Company and Stillwater Property and Casualty Insurance Company (collectively referred to as Stillwater) and the A- IFSR for Evergreen National Indemnity Company. The issuer and debt ratings for WT Holdings, Inc. have also been affirmed at BB+. The Outlook for all ratings is Stable.
The ratings for SIC and SPAC reflect their improving underwriting performance and capitalization, broad and diversified distribution platform, effective reinsurance and catastrophe risk management, and experienced management team. Stillwater’s underlying underwriting performance has improved meaningfully as management’s pricing, underwriting, claims and exposure-management actions have gained traction. SIC’s combined ratio improved to 107.6% in 2025 from 116.7% in 2024 and improved further to 92.5% in the first half of 2026, reflecting continued improvement in underlying underwriting performance. Risk-adjusted capitalization and underwriting leverage have also improved, with SIC’s policyholders’ surplus increasing to approximately $246.0 million at June 30, 2026 from $214.8 million at year-end 2025. Stillwater also benefits from relationships with more than 3,500 independent agencies and brokers and several large national insurance organizations.
These positives are somewhat offset by Stillwater’s exposure to natural catastrophes, history of adverse reserve development, product and geographic concentrations, and continued challenges in personal auto. Gross catastrophe losses totaled approximately $122.7 million in 2025, primarily reflecting the Eaton and Palisades California wildfires, although the impact on net results was substantially mitigated by reinsurance. SIC reported $27.9 million of adverse prior-year reserve development in 2025, representing the fourth consecutive full calendar year of adverse development. However, reserve development improved during the first half of 2026, with approximately $1.9 million of favorable prior-year development. Stillwater remains concentrated in personal lines homeowners and auto, with homeowners representing approximately 71% of SIC’s 2025 direct written premium and California representing approximately 48%. Personal auto results remain challenged despite substantial rate increases and improved segmentation.
Evergreen’s rating reflects its very strong risk-adjusted capitalization, consistent underwriting profitability, prudent underwriting leverage and experienced management team in its niche surety business, which focuses primarily on the waste/landfill sector. Evergreen continued to generate favorable underwriting results during the first half of 2026, reporting approximately $1.6 million of net underwriting income and $2.4 million of net income, while favorable prior-year reserve development totaled approximately $2.5 million. Policyholders’ surplus increased to approximately $51.3 million at June 30, 2026 from $49.8 million at year-end 2025, despite the payment of a $1.25 million shareholder dividend during the period. Evergreen’s RBC ratio was 2019% at year-end 2025, while premium and reserve leverage remain low relative to surplus. The company also materially improved the risk profile of its investment portfolio during 2025 by reducing common stock exposure and reallocating proceeds primarily to fixed-income securities.
These positive rating factors are somewhat constrained by Evergreen’s significant product concentration in waste/landfill surety, residual exposure to higher-risk investments and key person risk. Waste/landfill remains the company’s dominant business, representing approximately 69% of 2025 net earned premium. While the investment portfolio has been materially de-risked, below-investment-grade fixed-income securities and Schedule BA assets remain meaningful relative to surplus. Finally, because of the highly specialized nature of the business, Evergreen remains dependent on a small group of highly experienced executives and long-tenured personnel.
For the Stillwater companies and WT Holdings, sustained underwriting profitability and earnings improvement at SIC, continued organic surplus growth and strengthening of risk-adjusted capitalization, sustained improvement in reserve adequacy and reduced catastrophe-related earnings volatility, or a sustained improvement in WT Holdings’ financial leverage and fixed-charge coverage while maintaining adequate holding-company liquidity could result in a positive rating action. Deterioration in underwriting performance or a reversal of the recent improvement in operating profitability, material weakening of risk-adjusted capitalization or sustained material adverse reserve development that meaningfully pressures SIC’s capital position, significant catastrophe losses, increased catastrophe/geographic concentration, or deterioration in reinsurance protection that materially weakens earnings or capitalization, or material deterioration in WT Holdings’ financial leverage, fixed-charge coverage, or liquidity could result in a negative rating action.
For Evergreen, sustained favorable underwriting performance and reserve development while maintaining very strong risk-adjusted capitalization, continued organic surplus growth and maintenance of conservative underwriting and reserve leverage, further meaningful reduction in higher-risk investments, including below-investment-grade fixed income and Schedule BA assets, or meaningful growth in scale accompanied by improvement in product diversification that reduces reliance on waste/landfill surety while maintaining underwriting discipline and profitability could result in a positive rating action. Significant or sustained deterioration in underwriting profitability, loss experience, or reserve development, material weakening of risk-adjusted capitalization, material investment losses or increased exposure to higher-risk investments that meaningfully weakens capital or increases earnings volatility, or material weakening of Evergreen’s waste/landfill surety franchise, including loss of key relationships or increased concentration risk that adversely affects earnings or competitive position could result in a negative rating action.
WT Holdings, Inc. is a holding company organized under the laws of Tennessee and the ultimate owner of SIC, SPAC and Evergreen. SIC and SPAC are multiple line property and casualty insurers, authorized to write homeowners, commercial lines, auto and other personal lines of insurance through independent agents in all 50 states, and the District of Columbia. Evergreen is an Ohio-domiciled property and casualty company that focuses operations on specialty surety programs, including landfill closure and post closure bonds, apartment lease bonds, lease damage undertaking bonds, waste hauling bonds, and contract surety bonds across most of the United States.
To access ratings and relevant documents, click here.
Click here to view the report.