AM Best Removes From Under Review with Developing Implications, Affirms Credit Ratings of VR Insurance Holdings, Inc.’s Insurance Subsidiaries - Yahoo Finance

OLDWICK, N.J., December 15, 2022--(BUSINESS WIRE)--AM Best has removed the nether reappraisal with processing implications and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of "bbb" (Good) of National Security Fire and Casualty Company (NSFC). AM Best besides has removed from nether reappraisal with processing implications and affirmed the FSR of B+ (Good) and the Long-Term ICR of "bbb-" (Good) of NSFC’s wholly owned subsidiary, Omega One Insurance Company, Inc. (Omega). The outlook assigned to these Credit Ratings (ratings) is stable. In addition, AM Best has removed from nether reappraisal with processing implications and affirmed the FSR of B++ (Good) and the Long-Term ICR of "bbb" (Good) of NSFC’s affiliated life/health insurer, National Security Insurance Company (NSIC). The outlook assigned to these ratings is negative.

Concurrently, AM Best has withdrawn the Long-Term ICR of "bb" (Fair) of The National Security Group, Inc. (NSEC) (Wilmington, DE), which was the group’s publically traded genitor company. At the clip of the withdrawal, these ratings were nether reappraisal with processing implications. NSEC has been taken backstage arsenic a effect of its acquisition (along with its operating subsidiaries) by VR Insurance Holdings, Inc., which is simply a backstage holding institution formed by a radical of investors. All companies are domiciled successful Elba, AL, unless different specified.

The ratings of NSFC bespeak its wide equilibrium expanse strength, which AM Best assesses arsenic strong, arsenic good arsenic its marginal operating performance, constricted concern illustration and due endeavor hazard absorption (ERM). The ratings of Omega bespeak its equilibrium expanse strength, which AM Best assesses arsenic strong, arsenic good arsenic its marginal operating performance, precise constricted concern illustration and due ERM. The unchangeable outlook connected some of the property/casualty entities reflects caller hazard simplification efforts by NSFC to trim its coastal footprint successful the Louisiana market; this is expected to trim its catastrophe hazard and proceed its improved underwriting performance.

The ratings of NSIC bespeak its equilibrium expanse strength, which AM Best assesses arsenic adequate, arsenic good arsenic its capable operating performance, constricted concern illustration and due ERM. NSIC is expected to heighten and diversify its concern illustration arsenic the institution enters the multi-year guaranteed annuity (MYGA) market, which is cardinal to the caller owners oregon company’s concern strategy. However, the antagonistic outlook reflects prime of superior concerns associated with NSIC providing partial financing of VR Insurance Holdings, Inc.'s acquisition. This stems from the issuance of a enactment that is simply a ample percent of NSIC’s existing superior base, arsenic good arsenic an existing surplus enactment with NSFC to enactment its superior pursuing worldly catastrophe losses successful 2020.

Going forward, AM Best expects the radical to heighten its ERM capabilities, peculiarly wrong NSIC, Enhancing the group’s wide operating profitability should amended diversification of net portion maintaining due levels of risk-adjusted capitalization, arsenic measured by Best’s Capital Adequacy Ratio (BCAR), and enactment concern growth. Specific to concern hazard and plus liability matching (ALM), AM Best expects NSIC to support an due ALM lucifer on with capable liquidity resources and prudent concern allocations arsenic it enters the MYGA market. Additionally, though the holding institution is private, AM Best expects fiscal and operating leverage ratios to beryllium maintained astatine a level commensurate with the group’s ratings, on with due involvement sum ratios.

This property merchandise relates to Credit Ratings that person been published connected AM Best’s website. For each standing accusation relating to the merchandise and pertinent disclosures, including details of the bureau liable for issuing each of the idiosyncratic ratings referenced successful this release, delight spot AM Best’s Recent Rating Activity web page. For further accusation regarding the usage and limitations of Credit Rating opinions, delight presumption Guide to Best's Credit Ratings. For accusation connected the due usage of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best property releases, delight presumption Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is simply a planetary recognition standing agency, quality steadfast and information analytics supplier specializing successful the security industry. Headquartered successful the United States, the institution does concern successful implicit 100 countries with determination offices successful London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For much information, sojourn www.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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