Abstract
Ratings of Alfa Insurance Group suggested that the outlook changed from negative to stable. Further there were changes brought about in respect of the financial strength ratings as well as issuer credit ratings.
Alfa Insurance Group started its operations in providing insurance in the year 1946. Alfa Insurance Group is an “outgrowth” of Alabama Farmers Federation. Alfa Insurance Group has been regarded as one of the 200 Best Small Companies in United States of America. This was conferred by Forbes magazine. The company initially indulged in extending fire insurance policies to the farmers. However, the company diversified and started providing insurance coverage policies with respect to automobiles, life and property.
Ratings:
The financial strength rating as well as issuer credit rating was conducted to completion for the company by A.M Best Co. A.M Best Co occupies one of the prime places in ranking companies. This rating company was established in 1899. Ratings of Alfa Insurance Group comprised financial strength rating, which changed to A+ from A++. The Issuer Credit rating of the company was changed from “aa+” to “aa-”. The debt ratings were changed from “aa-” to “a”. Even the outlook of the rating was changed from negative to stable.
Companies to which ratings are applicable:
The two changes (FSR= A++ to A+ and ICR=”aa+” to “aa-”), which were brought about in the FSR or financial strength rating and ICR or issuer credit rating was also applicable for the following companies under the Alfa Insurance Group. They include:
Alfa Mutual Fire Insurance Company
Alfa Vision Insurance Corporation
Virginia Mutual Insurance Company
Alfa Mutual Insurance Company
Alfa Specialty Insurance Corporation
Alfa Mutual General Insurance Company
Alfa General Insurance Corporation
Alfa Insurance Corporation
Conclusions of the ratings:
The ratings of Alfa Insurance Group suggest that the company has capitalization, which is sturdy.
Operating performance on a long term basis is sound
The company enjoys competitive advantage, which is sustainable.
The strategies adopted by the company in operating the Group are conservative.