AM Best Upgrades Credit Ratings of Agency Insurance Company of Maryland, Inc.

BY Business Wire | CORPORATE | 09/01/21 04:27 PM EDT

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to ?a-? (Excellent) from ?bbb+? (Good) of Agency Insurance Company of Maryland, Inc. (AIC) (Hanover, MD). The outlook of the Credit Ratings (ratings) has been revised to stable from positive.

The ratings reflect AIC?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 ratings upgrade is the result of favorable trends in AIC?s balance sheet strength. This is due to continued improvement in the company?s policyholder surplus level and its risk-adjusted capitalization. AIC?s overall risk-adjusted capitalization, as measured by Best?s Capital Adequacy Ratio (BCAR), is assessed at the strongest level. Balance sheet strength is also supported by favorable reserve development and sound liquidity measures. AIC?s strong operating performance has aided in the company?s surplus growth. Additionally, premium growth has slowed in recent years, and surplus appreciation has outpaced surplus growth in the past three years. This has assisted the net and gross leverage ratios to decline over the latest five-year period to a more favorable position relative to AM Best?s non-standard auto composite.

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 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 ? 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Source: AM Best

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.