AM Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of “bbb” of Aventus Insurance Company (Aventus) (Fort Worth, TX). The outlook of the FSR is stable.
The ratings reflect Aventus’ balance sheet strength, which AM Best categorizes as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The revised Long-Term ICR outlook to positive reflects the expectation for continued strengthening of the balance sheet through organic surplus growth generated from profitable operating results as a niche fronting carrier.
Aventus’ adequate operating performance is driven by underwriting profitability and investment income. The limited business profile reflects its geographically concentrated position in Texas. Aventus benefits from an appropriate ERM program that supports the risk profile of the organization and includes stress testing to determine investment allocation and reinsurance purchases.
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