Golden Bear California Credit Ratings Under Review With Negative Implications
AM Best placed under review with negative implications, a financial strength rating of A (excellent) and a long term issuer credit rating of âaâ (excellent) from Golden Bear Insurance Co. in Stockton, California.
Golden Bear’s ratings have come under review with negative implications reflecting excess erosion seen in 2021, for which management has released corrective action plans in response, according to the rating agency.
âIn the first nine months of 2021, the company recorded approximately $ 12 million in reserves for adverse losses, primarily related to claims that have been adversely affected by social inflation factors, as well as business of higher than expected losses in some programs and geographies, âsaid AM Best. “Adverse development is the main driver of volatility leading to an 8.2% ($ 6 million) decrease in surplus during the year.”
According to AM Best, management has presented plans to replenish short-term capital losses, which should strengthen the company’s risk-adjusted capitalization and overall balance sheet strength. Ratings will remain under review until management takes action, and AM Best assesses the impact on Golden Bear.
Last year, AM Best upgraded the carrier’s financial strength rating to A (excellent) from A- (excellent) and the issuer’s long-term credit rating to “a” from “a-“, noting Golden Bear’s strong balance sheet, strong operating performance, neutral business profile and appropriate management of corporate risks were the reasons for the decision.
Golden Bear underwrites personal and business insurance, including commercial property, principal property, excess damage, and cannabis-related damage. The company also offers liability for lawyers and liability for testing laboratories.
Golden Bear is a licensed insurer in California, and underwrites disallowed excess line insurance through brokers in 50 states.
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