A.M. Best has revised the outlooks to stable from negative and
affirmed the Financial Strength Rating of B- (Fair) and the Long-Term
Issuer Credit Rating of “bb-” of Southern General Insurance Company
(SGIC) (Marietta, GA).
The Credit Ratings (ratings) reflect SGIC’s balance sheet strength,
which A.M. Best categorizes as adequate, as well as its weak operating
performance, limited business profile and marginal enterprise risk
The stable outlooks reflect the improvement in operating performance
resulting from underwriting initiatives implemented to improve rate
adequacy. Risk-adjusted capitalization is assessed as adequate; however,
leverage measures have improved in recent periods, as policyholder
surplus has increased at a faster pace relative to premiums. Partially
offsetting rating factors include unfavorable reserve development and
SGIC’s limited scale of operations. The company’s business profile is
limited due to its product offering and geographic concentration.
This press release relates to Credit Ratings 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 see A.M. Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view Understanding
Best’s Credit Ratings. For information on the proper media
use of Best’s Credit Ratings and A.M. Best press releases, please view Guide
for Media – Proper Use of Best’s Credit Ratings and A.M. Best Rating
Action Press Releases.
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