AM Best has revised the outlooks to stable from positive and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of Frank Winston Crum Insurance Company (FWCI) (Clearwater, FL).

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

The revised outlooks to stable from positive reflect adverse loss development stemming from construction defect claims, further affected by legal defense costs. Stucco-related claims have been a significant source of losses. FWCI has implemented significant underwriting changes with plans for more to mitigate further loss development.

FWCI’s management team has implemented initiatives to improve profitability, which include significant rate action, non-renewals, specific exclusions, reserve strengthening and continued refinement of underwriting standards. The company is improving its claims handling and initial reserving practices and diversifying outside of Florida, all of which are expected to help mitigate volatility.

Factors that could trigger negative rating actions include a deterioration in operating results that do not align with the strong operating performance assessment, particularly if the results are driven by significant adverse reserve development. Additional factors include a decline in the overall balance sheet strength assessment that is below AM Best’s expectations.

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.

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