#AMBest – The Media Pub News (TM)

AM Best Affirms credit ratings of First American Title Insurance Group members and First American Financial Corporation

OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a” of First American Title Insurance Company (Omaha, NE) and its title subsidiaries, which are referred to as First American Title Insurance Group (FATIG). In addition, AM Best has affirmed the Long-Term ICR of “bbb” of the parent holding company, First American Financial Corporation (FAF) (Delaware) [NYSE: FAF]. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the companies and ratings.)

The ratings reflect FATIG’s balance sheet strength, which AM Best categorizes as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

FATIG maintains a solid market position within the U.S. title insurance industry as its second-largest underwriter, based on 2019 direct premiums written. Policies are distributed on a direct basis and through a network of independent agents. The group invests heavily in its title plant, which is one of the most comprehensive in the industry. The group’s operating results have generally been in line with the title industry composite averages and supportive of surplus growth. FATIG benefits from a strong franchise value, financial flexibility and operational support from FAF, which maintains relatively modest financial leverage and solid interest coverage.

The FSR of A (Excellent) and the Long-Term ICRs of “a” have been affirmed with stable outlooks for the subsidiaries of First American Financial Corporation:

First American Title Insurance Company
First American Title Insurance Company of Australia Pty Limited
First American Title Insurance Company of Louisiana
First European Title Insurance Company Limited
First Title Insurance plc
Ohio Bar Title Insurance Company

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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Contacts

Kourtnie Beckwith

Financial Analyst

+1 908 439 2200, ext. 5124

kourtnie.beckwith@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Fred Eslami
Associate Director
+1 908 439 2200, ext. 5406

fred.eslami@ambest.com

Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

AM Best: Market dislocation drives growth for U.S. surplus lines (AM BestTV)

OLDWICK, N.J.–(BUSINESS WIRE)–In this episode of ^AMBestTV, David Blades and Robert Raber, both associate directors, AM Best, said some excess and surplus lines insurers experienced a 15-year high in premium gains during 2019. Click on http://www.ambest.com/v.asp?v=surpluslines920 to view the entire program.

Blades highlighted the level of U.S. surplus lines business volume in 2019.

“The U.S. surplus lines premium volume increased considerably,” said Blades. “In particular, U.S. surplus lines companies that write more than 50% of their total business on a surplus lines basis increased their direct premium written by almost 15%, the highest level of growth since 2006. The entire surplus lines market, including business that is written by the Lloyd’s market syndicates, grew by 11.2% in 2019.”

Raber said the COVID-19-fueled economic shifts that have impacted the surplus lines market.

“The flow of new businesses definitely changed in two different directions,” said Raber. “First, there was a temporary decline in new business coming into the U.S. surplus lines market beginning in late March and into early April, as the stay-at-home and shelter-in-place orders were implemented across the country. At the same time, rates are continuing to rise. AM Best’s expectation is that conditions are going to persist in the short term for the continuing rising of rates, as it continues to be a hardening market.”

Looking at the balance of 2020 and into 2021, AM Best anticipates this sector will continue to show resiliency.

To access the related market segment report, titled, “Expanding Opportunities Bolster Surplus Lines Growth and Operating Results,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=300916.

Recent ^AMBestTV coverage includes:

AM Best: Canada Property/Casualty Insurers Well-Positioned; Life Writers Face Volatility in 2020: Brian Lynch and Anthony McSwieney, senior financial analysts, AM Best, said 2020 has brought fewer property/casualty (P/C) claims, but has increased investment uncertainty in the Canada market: http://www.ambest.com/v.asp?v=ambcanada920.
Hardening Market Driving Bermuda Captive Growth: Captive insurers old and new are writing more business during the hardening market, according to a panel focused on the Bermuda landscape: http://www.ambest.com/v.asp?v=ambcaptives920.
Hard Market Driving Interest in Captives: The pandemic, economic downturn and higher insurance rates have increased interest in captive insurers, said panelists in a recent AM Best webinar: http://www.ambest.com/v.asp?v=ambcaptiverecut920.
New Data Sources, AI Changing Commercial Underwriting: The “explosion of digital economy” and use of artificial intelligence is improving underwriting, according to the “Using New Data to Out-Select the Competition,” panel: http://www.ambest.com/v.asp?v=carpedata920.

^AMBestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at www.ambest.com/multimedia/ambtvsignup.html. View ^AMBestTV episodes at www.ambest.tv.

Contacts

Lee McDonald
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561
lee.mcdonald@ambest.com