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AM Best lifts outlooks for Skyward Specialty insurers to positive
AM Best affirmed A (Excellent) financial strength ratings while changing long term issuer credit outlooks for multiple Skyward units to positive from stable.
AM Best upgraded the outlooks on several companies within Houston-based Skyward Specialty Insurance Group, moving them to positive from stable, while affirming the units’ Financial Strength Rating of A (Excellent).
The agency also changed outlooks for the insurers’ Long-Term Issuer Credit Ratings to positive from stable, citing sustained underwriting profitability and investment income.
For the overall Skyward Group, AM Best revised the outlook on its Long-Term ICR to positive from stable and affirmed the rating at bbb (Good). It also set the long-term issue credit rating outlook to positive for the group’s USD $20 million of 7.25% subordinated notes due 2039, with the FSR outlook remaining stable.
AM Best said the ratings action is supported by Skyward’s very strong balance sheet strength, adequate operating performance, neutral business profile, and appropriate enterprise risk management, with the positive outlook reflecting what it describes as continuing strength in operating results. The agency added that capital has been supported by operating earnings and capital contributions from the parent when needed, and noted improved underwriting and investment performance has helped the group generate organic surplus growth.