A.M. Best Upgrades Issuer Credit Ratings of Florida Family Insurance Company and Lakeview Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has upgraded the issuer credit ratings (ICR) to “bbb+” from “bbb” and affirmed the financial strength rating of B++ (Good) of Florida Family Insurance Company and Lakeview Insurance Company (collectively known as the companies). The outlook for all ratings is stable. Both companies are domiciled in Bonita Springs, FL.

The upgrading of the ICRs reflect the companies’ continued solid risk-adjusted capitalization, as well as their profitable operating performances in recent years due to their prudent underwriting criteria and sound overall risk management focus. As a result, the companies have experienced significant surplus growth in recent years. In addition, conservative reinsurance programs are maintained, protecting the companies from both potential frequent and severe catastrophe events.

These positive factors are somewhat offset by the companies’ significant dependence on reinsurance, due to their inherent exposure to weather-related events. However, as a result of the companies’ improved capital positions in recent periods, they have subsequently reduced their reliance on quota share reinsurance programs. In addition, the companies face potential regulatory and judicial concerns as single state property insurers in Florida.

For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.