A.M. Best Affirms Ratings of The Hartford Steam Boiler Group’s Members
OLDWICK, February 05, 2016- A.M. Best has affirmed the financial strength rating (FSR) of A++ (Superior) and the issuer credit ratings (ICR) of “aa+” of the members of The Hartford Steam Boiler Group (HSB) (Hartford, CT). The outlook for the ratings is stable. (See below for a detailed listing of the companies.)
The ratings recognize HSB’s distinctive niche business profile, excellent risk-adjusted capitalization, strong underwriting performance and reserving history. HSB is a leading provider of equipment breakdown (boiler and machinery), specialty engineering insurance and machinery inspection services, and it continues to maintain this position with superior loss control capacity, technical expertise and a unique industry database.
The rating affirmations also reflect the group’s synergies with Munich Reinsurance America, Inc. and its ultimate parent, Munich Reinsurance Company (Munich Re). HSB’s relationship with Munich Re has provided access to new markets. Furthermore, HSB’s robust enterprise risk management (ERM) practices receive additional benefits from Munich Re’s extensive ERM resources. Also considered in the rating is HSB’s modified reinsurance program to support its growth strategies.
HSB management has been very successful in managing through underwriting cycles and has the expertise and resources required to take advantage of existing and new underwriting opportunities. Although growth opportunities in HSB’s core domestic equipment breakdown markets are moderate, the group is growing its expertise and expanding its product offerings to include coverages for new technologies, cyber risk and data privacy, the energy market, personal lines products and specialty liability coverages.
A.M. Best believes that HSB is well-positioned at its current rating level. However, positive rating actions could occur if there is upward rating movement at the ultimate parent level. Rating drivers that may lead to negative rating actions include a sustained, material deterioration in its operating performance or substantial deterioration in its risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR).
The FSR of A++ (Superior) and the ICRs of “aa+” have been affirmed for the following members of The Hartford Steam Boiler Group:
- The Hartford Steam Boiler Inspection and Insurance Company
- The Hartford Steam Boiler Inspection and Insurance Company of Connecticut
- The Boiler Inspection and Insurance Company of Canada
- HSB Specialty Insurance Company
- HSB Engineering Insurance Limited
This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page.
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