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AM Best Removes From Under Review With Negative Implications And Downgrades Arizona Automobile Insurance Company Credit Ratings; Confirms credit ratings of Alfa Mutual Insurance Company

AM Best Removes From Under Review With Negative Implications And Downgrades Arizona Automobile Insurance Company Credit Ratings;  Confirms credit ratings of Alfa Mutual Insurance Company

OLDWICK, NJ, May 06, 2022BUSINESS WIREAM Best removed the rating with negative implications and reduced the Financial Strength (FSR) rating to A (Excellent) from A+ (Superior) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “a” (Excellent) from “aa-” (Superior) of Arizona Automobile Insurance Company (AAIC) (Phoenix, AZ). The outlook assigned to these Credit Ratings is stable. At the same time, AM Best confirmed the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Alfa Mutual Insurance Company (Alfa) and its remaining members of the Alfa Insurance Group (Alfa Group). (See below for a detailed list of these companies and reviews). At the same time, AM Best has confirmed the FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) of Alfa Life Insurance Corporation (Alfa Life). The outlook for these ratings is stable. All companies are headquartered in Montgomery, AL.

AAIC was acquired by Trexis One Insurance Corporation, which is part of the Alfa group. Fully integrated into Alfa’s strategic plans, AAIC sells non-standard auto insurance policies for the Alfa group, primarily in Arizona, Colorado and Nevada. AAIC’s downgrade reflects the rating difference between its former and current ownership, with the company joining the Alfa group effective March 1, 2022.

Alfa’s ratings reflect the strength of the group’s balance sheet, which AM Best judges to be the strongest, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management (ERM). Alfa primarily underwrites a mix of personal auto, personal property, business and specialty insurance in the three core states of Alabama, Georgia and Mississippi. The company also underwrites non-standard auto coverage in 13 states.

Alfa Life’s ratings reflect its balance sheet strength, which AM Best rates as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM. The company is a wholly owned subsidiary of Alfa and distributes life insurance products primarily in Alabama, Mississippi and Georgia.

The FSR of A (Excellent) and the Long-Term ICR of “a” (Excellent) have been confirmed for the following members of Alfa Insurance Group:

  • Alfa Mutual Insurance Company

  • Alfa Mutual Fire Insurance Company

  • Alfa Mutual General Insurance Company

  • Alfa General Insurance Corporation

  • Alfa Insurance Company

  • Trexis Insurance Company

  • Trexis One Insurance Company

This press release relates to Credit Ratings published on AM Best’s website. For all rating information related to the release and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, see AM Best’s Recent Review Activity webpage. For more information about the uses and limitations of credit rating advice, see Best . Credit Rating Guide† 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, see Guide to the correct use of Best .’s ratings and reviews

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. The company is headquartered in the United States and does business in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information visit www.ambest.com

Copyright © 2022 by AM Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

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