AM Best downgrades Aegis Security Insurance Company’s credit rating; Maintains under review with negative implications status


OLDWICK, New Jersey, May 05, 2022–(BUSINESS WIRE)–AM Best downgraded Aegis Security Insurance’s financial strength rating from A- (Excellent) to B++ (good) and the issuer’s long-term credit rating to “bbb+” (good) from “a-” (Excellent) Company (Aegis) (Harrisburg, PA). At the same time, AM Best maintained status under review with negative implications on these credit ratings (ratings).

The ratings reflect the strength of Aegis’ balance sheet, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and marginal management of business risks.

The downgrades to the rating reflect a revision of the company profile assessment from neutral to limited given the company’s continued fluctuations in distribution agreements, product offerings, business plans whatever. little incoherence and the geographical concentration of risks.

The maintenance of the status under review with negative implications is mainly due to the reduction of the risk-adjusted capitalization of the company at the end of the year 2021. The reduction was motivated by a considerable increase in the underwriting leverage due to the assumption of a real estate business portfolio, coupled with a decline in surplus of almost 7% due to weather-related claims and the corresponding net underwriting loss. The continued status under review with negative implications also recognizes efforts to improve risk-adjusted capitalization with the sale of its wholly-owned subsidiary, American Sentinel Insurance Company. A definitive agreement has been signed with an expected closing date of late June or July 2022. The sale is expected to result in a net gain and subsequent improvement in risk-adjusted capitalization. In addition, management indicated a likely reduction in premium underwriting given various re-underwriting initiatives and the continued decline of one of its current distribution channels. In the absence of capital improvement, ratings will likely be further downgraded. The ratings will remain under review pending the closing of the sale of the subsidiary and AM Best’s review of the full impact of these transactions.

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 relevant 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 more information on the use and limitations of credit rating opinions, please see Best’s Guide to Credit Ratings. For more information on the proper use of Best’s Credit Scores, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see the Guide to Proper Use of Best’s Best ratings and reviews.

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 more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

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Joseph Burton
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Richard Attanasio
senior director
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Christopher Sharkey
Manager, Public Relations
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Jeff Mango
General director,
Strategy & Communication
+1 908 439 2200 ext. 5204

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