Rating Agencies Are On The Mark, But Reserving Practices Are Way OffIt's hard not to read news about property-casualty insurers whose financial strength ratings tumble from "A" to "B" in a heartbeat, only to have their hearts stop beating soon after, without wondering what's going on.

The most recent examples are Legion Insurance Company and Villanova Insurance Company, both owned by Mutual Risk Management Group. The companies, whose A.M. Best ratings were kicked down to "B" from "A-minus" in mid-February, were put into rehabilitation by the Pennsylvania insurance commissioner just five weeks later.

The timing of the events raises questions about cause and effect.

Continue Reading for Free

Register and gain access to:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.