AM Best Removes From Under Review With Negative Implications, Downgrades Credit Ratings of SILAC Insurance Company

SEPTEMBER 20, 2024 05:30 PM (EDT)

AM Best Removes From Under Review With Negative Implications, Downgrades Credit Ratings of SILAC Insurance Company

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FOR IMMEDIATE RELEASE

OLDWICK - SEPTEMBER 20, 2024 05:30 PM (EDT)
AM Best has removed from under review with negative implications and downgraded the Financial Strength Rating (FSR) to B (Fair) from B+ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) to "bb+" (Fair) from "bbb-" (Good) of SILAC Insurance Company (SILAC) (Salt Lake City, UT). The outlook assigned to the FSR is stable while the outlook assigned to the Long-Term ICR is negative.

The Credit Ratings (ratings) reflect SILAC's balance sheet strength, which AM Best assesses as adequate, as well as its adequate operating performance, neutral business profile and marginal enterprise risk management.

The ratings of SILAC have been removed from under review with negative implications and downgraded, with a negative outlook assigned to the Long-Term ICR, primarily due to continued reliance on unrated reinsurers with increasing reinsurance leverage. Due to this factor, AM Best notes a decline in SILAC's risk-adjusted capitalization, which is assessed at the weak level, as measured by Best's Capital Adequacy Ratio (BCAR).

This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.