OLDWICK, NJ–(BUSINESS WIRE†AM 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 has the FSR of A (Excellent) and the Long-Term Confirmed 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 ratings). FSR of A (Excellent) and Long-Term ICR of “a” (Excellent) of Alfa Life Insurance Corporation (Alfa Life) confirmed. 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
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