We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Alleghany & Units See Rating Action from A.M. Best
Read MoreHide Full Article
Alleghany Corporation’s issuer credit ratings (ICR) have been upgraded to “a-” from “bbb+” by A.M. Best. Concurrently, the rating giant upgraded the financial strength rating (FSR) to A+ (Superior) from A (Excellent) and the ICR to “aa-“from “a+” of Transatlantic Reinsurance Company and its subsidiaries. Transatlantic is a subsidiary of Alleghany. The outlook is revised to stable from positive.
The ratings upgrade of Transatlantic Reinsurance came on the back of sturdy risk-adjusted capitalization, strong enterprise risk management, and stable operational performance as well as highly diversified book of business. Besides, the rating upgrade also reflects the recent transactions that have boosted Transatlantic Reinsurance’s business profile.
The credit rating giant anticipates Transatlantic Reinsurance to generate positive results, which will continue to support its ratings and be less volatile than its industry competitors over the course of full cycle.
At the same time, Alleghany’s affiliates, RSUI Indemnity Company and its reinsured subsidiaries had their FSR of A+ (Superior) and the ICRs of “aa-” affirmed by the rating agency. The outlook for each of these ratings remained stable.
Robust risk-adjusted capitalization and outstanding track record of high quality underwriting results, displaying industry outperformance, are reflected by the ratings affirmation of RSUI Indemnity and its subsidiaries.
Moreover, the rating giant affirmed the FSR of A (Excellent) and the ICRs of “a” of Capitol Indemnity and its affiliates, units of Alleghany. The outlook remained stable.
The ratings account for solid and sustained levels of risk-adjusted capitalization as well as Capitol Indemnity’s ongoing process of reorganizing books of business to generate more stable results.
Also, the FSR of A- (Excellent) and ICR of “a-” of Pacific Compensation Insurance Company, a subsidiary of Alleghany, were affirmed by A.M. Best, with a stable outlook for each. The rating agency expects that explicit support through intercompany reinsurance and direct capital support will be maintained or even exceeded if necessary. This formed the basis of Pacific Compensation’s ratings affirmation.
Rating affirmations or upgrades from credit rating agencies play an important role in retaining investor confidence on the stock as well as maintaining credit worthiness in the market. Hence, it is expected that such ratings will help the company write more business in the future.
Currently, Alleghany Corporation carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space include Allied World Assurance Company Holdings, AG (AWH - Free Report) , Argo Group International Holdings, Ltd. and National Interstate Corporation (NATL - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Alleghany & Units See Rating Action from A.M. Best
Alleghany Corporation’s issuer credit ratings (ICR) have been upgraded to “a-” from “bbb+” by A.M. Best. Concurrently, the rating giant upgraded the financial strength rating (FSR) to A+ (Superior) from A (Excellent) and the ICR to “aa-“from “a+” of Transatlantic Reinsurance Company and its subsidiaries. Transatlantic is a subsidiary of Alleghany. The outlook is revised to stable from positive.
The ratings upgrade of Transatlantic Reinsurance came on the back of sturdy risk-adjusted capitalization, strong enterprise risk management, and stable operational performance as well as highly diversified book of business. Besides, the rating upgrade also reflects the recent transactions that have boosted Transatlantic Reinsurance’s business profile.
The credit rating giant anticipates Transatlantic Reinsurance to generate positive results, which will continue to support its ratings and be less volatile than its industry competitors over the course of full cycle.
At the same time, Alleghany’s affiliates, RSUI Indemnity Company and its reinsured subsidiaries had their FSR of A+ (Superior) and the ICRs of “aa-” affirmed by the rating agency. The outlook for each of these ratings remained stable.
Robust risk-adjusted capitalization and outstanding track record of high quality underwriting results, displaying industry outperformance, are reflected by the ratings affirmation of RSUI Indemnity and its subsidiaries.
Moreover, the rating giant affirmed the FSR of A (Excellent) and the ICRs of “a” of Capitol Indemnity and its affiliates, units of Alleghany. The outlook remained stable.
The ratings account for solid and sustained levels of risk-adjusted capitalization as well as Capitol Indemnity’s ongoing process of reorganizing books of business to generate more stable results.
Also, the FSR of A- (Excellent) and ICR of “a-” of Pacific Compensation Insurance Company, a subsidiary of Alleghany, were affirmed by A.M. Best, with a stable outlook for each. The rating agency expects that explicit support through intercompany reinsurance and direct capital support will be maintained or even exceeded if necessary. This formed the basis of Pacific Compensation’s ratings affirmation.
Rating affirmations or upgrades from credit rating agencies play an important role in retaining investor confidence on the stock as well as maintaining credit worthiness in the market. Hence, it is expected that such ratings will help the company write more business in the future.
ALLEGHANY CORP Price
ALLEGHANY CORP Price | ALLEGHANY CORP Quote
Zacks Rank and Stocks to Consider
Currently, Alleghany Corporation carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space include Allied World Assurance Company Holdings, AG (AWH - Free Report) , Argo Group International Holdings, Ltd. and National Interstate Corporation (NATL - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>