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AM Best Revises Outlooks to Positive for Ohio Indemnity Company

AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Ohio Indemnity Company (OIC) (Columbus, OH).

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

The positive outlooks consider AM Best’s expectation that OIC’s balance sheet rating fundamentals will continue to strengthen over the medium term, with internal profit generation and retention that supports continued growth in the company’s surplus, while maintaining its strong operating performance.

OIC’s balance sheet assessment is underpinned by its risk-adjusted capitalization, which is at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). This reflects OIC’s conservative investment portfolio and loss reserving strategies. The company’s risk-adjusted capitalization is expected to remain at the strongest level, supported by increased retention of earnings. Further enhancing balance sheet strength is improved financial flexibility of OIC’s ultimate parent, Fenist, LLC, driven by the organization’s declining debt leverage. Partially offsetting these balance sheet factors is OIC’s elevated gross and net underwriting leverage and its vulnerability to credit risk due to its heavy utilization of reinsurance; however, collateral is held on these balances in the form of funds held, trusts or letters of credit.

OIC’s strong operating results have been driven by underwriting profits augmented by favorable prior-year loss reserve development and consistent net investment income. OIC’s key advantages are its ability to mitigate losses by leveraging management’s underwriting knowledge and niche focus, as well as its emphasis on loss control, claim management expertise and long-standing relationships with its customers.

OIC’s limited business profile reflects its niche as a specialty credit insurer primarily offering collateral protection products for lenders including equipment physical damage, creditor placed insurance, vendor single interest and guaranteed auto protection.

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

Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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