AM Best removes negative reviews and affirms the credit ratings of members of GuideOne insurance companies

AM Best removes negative reviews and affirms the credit ratings of members of GuideOne insurance companies

OLDWICK, NJ, February 08, 2024–(BUSINESS WIRE)–AM the best has removed from negative review and affirmed GuideOne Insurance Company’s Financial Strength Rating (FSR) of A- (Excellent) and Long-Term ICR of “a-” (Excellent) and its wholly owned subsidiaries, collectively referred to as GuideOne Insurance Companies (GuideOne). The outlook assigned to these Credit Ratings (ratings) is negative. All companies are headquartered in West Des Moines, IA. See below for a detailed list of all companies and ratings.

The ratings reflect the strength of GuideOne’s balance sheet, which AM Best rates as very strong, as well as its operating margin performance, neutral business profile and appropriate enterprise risk management.

These valuation actions follow a $200 million strategic capital investment by Bain Capital Insurance (Bain), which closed on December 29, 2023. The joint venture group (TMG) was created by Bain’s acquisition of the Insurance Company operational platform GuideOne. TMG will act as a full-service insurance operations provider for small and mid-sized mutual insurance operations, with GuideOne being the first customer for the new venture. The investment puts GuideOne in a much stronger capital position following the significant deterioration of the surplus in 2022, driven by a net loss together with unrealized capital losses, as well as a deterioration during the third quarter of 2023 due to losses ongoing underwriting and other losses.

The negative outlook reflects continued pressure on GuideOne’s balance sheet strength rating as unprofitable underwriting performance related to the specialty business has negatively impacted its capital levels in recent years. AM Best recognizes the significant actions the company has taken recently, including exiting the specialty business, to improve its capital position and underwriting results.

FSR of A- (Excellent) and Long-Term ICRs of “a-” (Excellent) have been removed from review with negative implications with a negative outlook assigned to GuideOne Insurance Company’s subsidiaries:

  • GuideOne Specialty Insurance Company

  • GuideOne America Insurance Company

  • GuideOne Elite Insurance Company

  • GuideOne National Insurance Company

  • GuideOne Property & Casualty Insurance Company

This press release relates to the Credit Ratings that are published on AM Best’s website. For all rating information relating to the release and related disclosures, including details of the office responsible for issuing each of the individual ratings referred to in this release, please see AM Best’s Last assessment activity Web page. For additional information regarding the use and limitations of Credit Score opinions, please see Guide to Best Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Ratings, Best’s Preliminary Credit Ratings and AM Best’s press releases, please see Guide to the proper use of Best ratings and reviews.

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

Copyright © 2024 by AM Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

Check out the source version at businesswire.com: https://www.businesswire.com/news/home/20240208604353/en/

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