Dallas-based The Republic Group (Republic) reports that A.M. Best Company has affirmed the rating of “A-” (Excellent) for each of the group’s companies. In addition to affirming the group’s current financial strength, A.M. Best assessed its outlook as “stable”.
The rating and outlook reflect the group’s solid capitalization, adequate operating profitability, longstanding regional market presence, conservative investment portfolio and the financial flexibility offered by its global parent, the Delek Group Ltd.
The company said its risk-adjusted capitalization is favorable due to its position as a regional writer targeting niche opportunities through a network of agents and managing general agent partners. In addition, the group’s investments have been realigned in recent years to a conservative, predominantly fixed income security portfolio. The result has translated into strong surplus appreciation over the past five years.
A.M. Best noted that the group’s conservative reinsurance program, disciplined underwriting and expanding footprint help mitigate its exposure to weather-related events and regional concentration of risk.
Source: Republic Companies Inc.
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