A.M. Best Affirms Ratings of Members of Donegal Insurance Group and Donegal Group, Inc.
November 03 2015 - 10:25AM
Business Wire
A.M. Best has affirmed the financial strength rating
(FSR) of A (Excellent) and the issuer credit ratings (ICR) of “a”
of the members of the Donegal Insurance Group (Donegal
Group). Concurrently, A.M. Best has affirmed the ICR of “bbb” of
the publicly traded holding company, Donegal Group Inc.
(Delaware) [NASDAQ: DGICA and DGICB]. The outlook for all ratings
is stable. (See below for a detailed listing of the member
companies.)
The affirmation of the ratings of the Donegal Group members is
based on supportive risk-adjusted capitalization, sound balance
sheet liquidity, generally positive earnings and good business
profile, which includes geographic and product line
diversification, effective use of technology in the independent
agency distribution channel and a history of successful expansion
through strategic acquisitions and affiliations. Although the
individual members within the Donegal Group play a specific role in
the organization’s overall business plan and their operating
performances may vary, each contribute favorably to the group’s
risk-adjusted capitalization. In addition, each of the members
support the corporate business strategy and benefit from shared
senior management, intercompany reinsurance and the added financial
flexibility of Donegal Group Inc. to raise capital through debt or
equity offerings during favorable investment markets.
These positive rating factors are partially offset by the
organization’s overall less favorable operating performance over
the previous five-year period and a slightly higher expense
structure. Operating performance over the period has been adversely
impacted by more frequent and severe weather events. However, A.M.
Best continues to look favorably upon the actions being taken by
management to improve operating performance through rate increases,
stronger underwriting standards and use of enterprise risk
management.
The affirmation of the ICR of Donegal Group Inc. recognizes the
overall financial strength of its property/casualty insurance
operation, its moderate amount of financial leverage and the
subordination of its creditors to the insurance companies’
policyholders.
While the ratings of Donegal Group’s members are stable, future
positive rating actions may result should a trend toward sustained
underwriting profitability develop. However, negative rating
actions could result should the group’s underwriting and operating
performance fall markedly short of A.M. Best’s expectations or if
there is a significant weakening of its overall risk-adjusted
capitalization.
The FSR of A (Excellent) and the ICRs of “a” have been affirmed
for the following members of Donegal Insurance Group:
- Atlantic States Insurance
Company
- Donegal Mutual Insurance
Company
- Le Mars Insurance Company
- Michigan Insurance Company
- The Peninsula Insurance
Company
- Peninsula Indemnity Company
- Sheboygan Falls Insurance
Company
- Southern Insurance Company of
Virginia
- Southern Mutual Insurance
Company
This press release relates to rating(s) that have been
published on A.M. 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 visit A.M.
Best’s Ratings & Criteria Center.
A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2015 by A.M. Best Company,
Inc. ALL RIGHTS RESERVED.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151103006315/en/
A.M. BestKenneth Tappen, 908-439-2200, ext.
5248Senior Financial
Analystkenneth.tappen@ambest.comorRichard Attanasio,
908-439-2200, ext. 5432Vice Presidentrichard.attanasio@ambest.comorChristopher
Sharkey, 908-439-2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorJim Peavy,
908-439-2200, ext. 5644Assistant Vice President, Public
Relationsjames.peavy@ambest.com
Donegal (NASDAQ:DGICA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Donegal (NASDAQ:DGICA)
Historical Stock Chart
From Apr 2023 to Apr 2024