Abstract:
Allmerica Financial Corporation rating was conducted by A.M Best, which is one of the oldest rating companies and most reputed since its inception in the year 1899. A.M Best had rated Allmerica Financial Corporation by keeping in mind a number of parameters. The rating was done for debts, property dealing companies, capital securities and other aspects. The write up below unveils some of the winning points of the company.
A.M Best, known as one of the leading rating agencies lately conducted financial ratings of Allmerica Financial Corporation. Allmerica Financial Corporation is responsible for underwriting casualty as well as property, annuity products, surety and products of life insurance. The company also extends installment loans on a short-term basis for SMEs or Small And Medium sized enterprises. Allmerica Financial Corporation rating performed by A.M Best was carried out to get an idea of the company's financial health.
Allmerica Financial Corporation rating by A.M Best:
A.M Best worked out the debt ratings, which were upgraded from “bb+” to “bbb”. This rating was for senior debts of Allmerica. As far as the company's capital securities are concerned the rating was enhanced to “bb” from “bb-”. With regard to ICR or issuer credit ratings, A.M Best conferred “a-”. This holds true for the casualty as well as property subsidiaries belonging to Allmerica. The life insurance firms were given the grade “bbb-”. In a nutshell, the ratings indicated a “stable outlook”.
Inference of Allmerica Financial Corporation rating:
Ratings of property and casualty firms:
The ratings reveal that the companies of Allmerica dealing with property and casualty have a healthy capitalization. Healthy capitalization may be attributed to the improvement in earnings from operations, non-payment of dividend to the parent company Allmerica. These companies also operate in a well-balanced manner and are geographically diverse. Business constitution of these companies is also sound.
Debt Rratings of the company:
Indications are that the company has improved financial flexibility and leverage.
Life Insurance companies:
Allmerica Financial Corporation rating implies that even though dividends had to be paid to the parent Allmerica, capitalization showed improvement. Efforts were also on to manage risks more effectively and efficiently.
Established in the year 1899, A.M Best is the oldest among all the company rating agencies.