AM Best puts Florida’s Bankers Insurance Group under negative review
AM Best has put the B++ rating of Bankers Insurance Group under review with negative implications, after a spate of cat events eroded the carrier’s surplus during the second half of 2020.
The ratings agency noted that the risk-adjusted capitalization ratio of the insurer had weakened, triggering an action plan by management to try and strengthen its balance sheet.
Efforts by management are expected to involve a capital infusion, reinsurance buying and exposure reduction efforts, AM Best said.
“These actions involve heightened execution risk in light of challenging reinsurance market conditions,” AM Best added in a statement on Thursday.
The majority of Florida carriers go without an AM Best rating entirely, preferring instead to retain the services of Demotech.
Subsidiaries of St Petersburg-based Bankers include Floridian insurers Bankers Insurance Company, First Community and Louisiana-domiciled Bankers Specialty Insurance Company.