KBRA Affirms Rating For American Traditions Insurance Company
13 Dec 2024 | New York
KBRA affirms the BBB insurance financial strength rating for American Traditions Insurance Company ("American Traditions"). The Outlook is Stable.
The rating reflects American Tradition’s experienced management team with a focused strategy in the catastrophe-exposed Florida homeowners market, consistent financial support and operational flexibility derived from its managing general agent affiliate, a conservative investment portfolio, and strong local market presence supported by a robust agency network. Additionally, strategic underwriting initiatives, including rate increases, stricter guidelines, and targeted loss control efforts, have contributed to declining litigation frequency and favorable trends in attritional loss ratios.
Balancing these strengths are the company’s single-state geographic and earnings concentration, which increases reliance on reinsurance and exposure to event risk, as well as trends of adequate risk-based capitalization and elevated premium leverage. Recent underwriting losses driven by frequent severe weather events, along with heightened reinsurance costs, have further pressured financial results. Although liquidity metrics have improved in recent quarters, they remain susceptible to catastrophe-related pressures.
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.
To access ratings and relevant documents, click here.
Click here to view the report.