AM Best Places Subject to Golden Bear Insurance Company Credit Ratings Review with Negative Implications


AM Best has placed under review with negative implications the financial strength rating of A (excellent) and the long-term issuer credit rating of “a” (excellent) of Golden Bear Insurance Company (Golden Bear) (Stockton, California).

Golden Bear’s credit ratings have come under review with negative implications reflecting the surplus erosion seen in 2021, for which management has released corrective action plans in response. In the first nine months of 2021, the company recorded approximately $ 12 million in the unfavorable development of claims reserves, mainly linked to non-life claims which were adversely affected by social inflation factors, as well as higher claims activity than expected in certain programs and geographic areas. Unfavorable development is the main driver of volatility leading to a rate of 8.2% ($ 6 million) decrease in surplus during the year. Management has presented plans to replenish short-term capital losses, which are expected to strengthen the company’s risk-adjusted capitalization, as measured by Best’s capital adequacy ratio (BCAR), and therefore overall strength. of the balance sheet. Ratings will remain under review until management takes action, and AM Best assesses the impact on Golden Bear.

This press release relates to credit ratings published on the AM Best 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 limits of credit rating opinions, please see Best Credit Score Guide. For more information on the proper use of Best’s credit scores, Best’s preliminary credit reports, and AM Best’s press releases, please see Guide to Proper Use of Best Ratings and Reviews.

AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. Based at United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico. For more information visit

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Braided david
Financial Analyst

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Christophe Draghi
Associate Director

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Christophe sharkey
Manager, Public Relations

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Jim peavy
Director, Communications

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Source: AM Best


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