Standard & Poor's Ratings Services today upgraded its ratings for Argonaut Group Inc., citing the San Antonio, Texas-based property-casualty insurer's improved profits and capitalization.
The New York-based S&P said it raised Argonaut's counterparty credit rating to "triple-B-minus" from "double-B-plus." The firm also raised counterparty credit and financial strength ratings on Argonaut's operating insurance companies to "A-minus" from "triple-B-plus." The outlook on Argonaut and its subsidiaries is stable.
S&P credit analyst Jason Jones noted several positive developments at Argonaut that prompted S&P to upgrade its ratings. They include: Argonaut's strong capitalization, improved earnings and competitive position, successful execution of its strategic focus on niche markets, and a level of financial leverage supportive of the rating.
Further, Argonaut's underwriting results are expected to continue to improve this year, with a combined ratio of between 95 and 96, S&P predicted. S&P cited strong results in excess and surplus lines, lower expected catastrophe losses, and continued consistent underwriting profits from the select markets and public-entity segments for its upbeat forecast.
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