|[February 16, 2017]
A.M. Best Affirms Credit Ratings of Accredited Surety and Casualty Company, Inc.
A.M. Best has affirmed the Financial Strength Rating of A-
(Excellent) and the Long-Term Issuer Credit Rating of "a-" of Accredited
Surety and Casualty Company, Inc. (Accredited) (Orlando, FL).
The outlook of these Credit Ratings (ratings) is stable. Accredited is
wholly owned by Randall & Quilter Investment Holdings Ltd.
(R&Q) (AIM:RQIH). R&Q owns non-life insurance portfolios in runoff,
services companies active in insurance and insurance entities that are
open for live business.
The ratings reflect Accredited's solid risk-adjusted capitalization
level, positive operating earnings and niche market position within the
bail bond industry. Since 2011, Accredited has generated increasing
underwriting profits due to its low bail bond loss experience.
Offsetting the positive rating factors is Accredited's current product
concentration, which exposes the company to changes in regulation
related to bail bonds, high expense structure and the execution risk
associated with its business expansion plan. Although management plans
to expand Accredited's writings into specialty property/casualty lines
to broaden its offerings, the majority of busines currently remains in
the surety sector. The stable outlooks reflect A.M. Best's expectation
that operating results will continue to be profitable, and that
Accredited's risk-adjusted capitalization level will remain supportive
as planned growth and diversification of product offerings begins to
This press release relates to Credit Ratings that have been published
on A.M. 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 A.M. Best's Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please view Understanding
Best's Credit Ratings.
A.M. Best is the world's oldest and most authoritative insurance
rating and information source. For more information, visit www.ambest.com.
Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its
subsidiaries. ALL RIGHTS RESERVED.
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