AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of
The ratings reflect DTRIC’s balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management. The ratings also consider the impact of implicit and explicit support given to DTRIC by
AM Best’s assessment of DTRIC’s balance sheet strength as strong is well supported by its strongest level of risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR). While this assessment also reflects the company’s strong liquidity, moderately conservative investment strategy, and good quality reinsurance panel, the company’s moderate dependence on reinsurance and its net exposure to potential losses from natural catastrophes continue to be the key offsetting factors to the assessment.
In terms of operating performance, the company recorded an underwriting loss of
DTRIC mainly specializes in underwriting personal automobile insurance, workers’ compensation and a number of other commercial line products in
The stable outlooks reflect AM Best’s expectation that DTRIC will maintain its overall balance sheet strength assessment, supported by risk-adjusted capitalization at least at a strong level, as measured by BCAR. AM Best also expects that ongoing strategic initiatives implemented by management are likely to maintain positive momentum of its operating performance over the short to medium term.
Negative rating actions could occur if there is material deterioration in DTRIC’s risk-adjusted capitalization caused by large-scale natural catastrophes or if its profitability falls below AM Best’s expectations due to competitive pressure, adverse claims experience or over-run expenses. Negative rating actions could also occur if there is significant reduction of support from ADI or significant deterioration in ADI’s credit profile, including its risk-adjusted capitalisation, financial leverage or interest coverage levels.
Ratings are communicated to rated entities prior to publication. Unless otherwise stated, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity webpage. For additional information regarding the use and of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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Source: AM Best