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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

AM Best Affirms Credit Ratings of Illinois Casualty Company

AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) of Illinois Casualty Company (ICC). Concurrently, AM Best affirmed the Long-Term ICR of “bbb-” (Good) of ICC Holdings, Inc. [NASDAQ: ICCH], the publicly traded holding company that owns 100% of ICC. The outlook of these Credit Ratings (ratings) is stable. Both companies are domiciled in Rock Island, IL.

The ratings reflect ICC’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

ICC’s very strong balance sheet reflects the strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), underwriting metrics that are generally in line with or better than the composite average and overall surplus growth during the most recent five-year period. While surplus grew cumulatively over this time, there were two years that reported a decline, which were influenced by unrealized capital losses from shifts in the equity market. Partially offsetting these positive factors are ICC’s elevated common stock leverage compared to the composite average and its adverse one-year loss reserve development in the most recent calendar year stemming from reserve strengthening efforts that consider social and property-related inflationary pressures. Common stock leverage is partially influenced by a fund, while reported as equity, has underlying assets in fixed income.

ICC’s operating performance continues to perform adequately with pretax operating income reported in each of the last five years, primarily a result of consistent net investment income, which has offset underwriting losses in most periods. The profile assessment reflects the company’s niche focus serving the food and beverage industry. AM Best considers the ERM program as appropriate for the company’s risk profile, with prudent reinsurance coverage purchased to insulate the balance sheet from shock weather losses.

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. For more information, visit www.ambest.com.

Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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