OLDWICK, N.J.–(BUSINESS WIRE)–A.M. Best has affirmed the Financial Strength Rating (FSR) of A++(Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of“aa+” of the members of The Hartford Steam Boiler Group (HSB).The outlook of these Credit Ratings (ratings) is stable. (See below fora detailed listing of the companies.)
The ratings recognize HSB’s superior level of risk-adjustedcapitalization, consistently favorable earnings and unique marketprofile. HSB is a leading provider of equipment breakdown (boiler andmachinery), specialty engineering insurance and equipment inspectionservices, and it continues to maintain this position with superior losscontrol capabilities, technical expertise and a unique equipmentfailures database.
The rating affirmations also reflect the group’s synergies with MunichReinsurance America, Inc. and its ultimate parent, MunichReinsurance Company (Munich Re). HSB’s relationship with Munich Rehas provided access to new markets. Furthermore, HSB’s robust enterpriserisk management (ERM) practices receive additional benefits from MunichRe’s extensive ERM resources.
HSB management has been very successful in managing through underwritingcycles, and has the expertise and resources required to take advantageof existing and new underwriting opportunities. HSB Group’s productexpansion and enhancement efforts beyond its core business line includehomeowners and farmowners equipment breakdown coverage; employmentpractices liability; identity recovery, data compromise and cyberliability coverages; and insurance for renewable energy facilities.
A.M. Best believes that the members of HSB Group are well-positioned atthe current rating level. However, positive rating actions could occurif there were upward rating movement at the ultimate parent level.Factors that may lead to negative rating actions include a sustained,material deterioration in operating performance or substantialdeterioration in risk-adjusted capitalization, as measured by Best’sCapital Adequacy Ratio (BCAR).
The FSR of A++ (Superior) and the Long-Term ICRs of “aa+” have beenaffirmed 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 ofConnecticut
The Boiler Inspection and Insurance Company of Canada
HSB Specialty Insurance Company
HSB Engineering Insurance Limited
This press release relates to Credit Ratings that have been publishedon A.M. Best’s website. For all rating information relating to therelease and pertinent disclosures, including details of the officeresponsible for issuing each of the individual ratings referenced inthis release, please see A.M. Best’s RecentRating Activity web page. For additional informationregarding the use and limitations of Credit Rating opinions, please view UnderstandingBest’s Credit Ratings.
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