Navigators Insurance Company AM Best Rating

Navigators Insurance Company AM Best Rating In 2023

AM Best has lowered Navigators International Insurance Company, Ltd.’s (NIIC) Financial Strength Rating (FSR) from A (Superb) to A- (Excellent) and its Long-Term Provider Credit Report Ranking (Long-Term ICR) from a+ to a- (United Kingdom). Also, the company has requested to withdraw from AM Finest’s interactive ranking process, hence AM Ideal has revoked these Credit Rankings (ratings).

AM Best classifies NIIC’s annual report strength as extremely good, and the rankings reflect this along with the company’s mediocre operating performance, low business profile, and excellent enterprise risk management. In addition, the results reflect, in an uptick, the encouragement given to NIIC by its parents. Financial Service Provider Group of Hartford, Inc. (The Hartford).

The grading exercises are indicative of NIIC’s persistent lack of strategic foresight. As a result, AM Finest has downgraded NIIC’s relevance to its ultimate parent and reduced the amount of lift it receives from The Hartford in its revised company profile assessment.

Since The Hartford’s future tactical purpose within the larger group is uncertain, the negative overview on the scores reflects this uncertainty.

As a result of a decrease in underwriting risk consequent upon the reorganization of The Hartford group’s businesses in Europe, NIIC’s risk-adjusted capitalization improved to the most stringent level at year’s end 2019, as measured by Best’s Capital Adequacy Ratio (BCAR). The annual report resilience analysis also factors in NIIC’s high-quality investment profile and extensive reinsurance coverage.

Due to unexpectedly significant insurance claims and high beginning costs relative to expenditures underwritten, NIIC’s operating performance has been modest since its inception. Future underwriting results are predicted to be negatively impacted by AM Ideal’s limited geographic footprint.

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