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AM Best Withdraws Credit Ratings of Centerline Insurance Company

BY Business Wire | CORPORATE | 01/07/25 03:02 PM EST

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of ?bbb+? (Good) of Centerline Insurance Company (Centerline) (headquartered in Knoxville, TN). The outlook of these Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn these ratings as the company has requested to no longer participate in AM Best?s interactive rating process.

The ratings reflect Centerline?s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

Effective Dec. 31, 2024, Centerline reverted to a captive insurance company for Watkins Associated Industries, Inc., from its recent endeavors to become a traditional commercial insurer, having recently exited the third-party commercial auto liability insurance space. The reduction in premium enabled Centerline?s surplus to support the remaining lines of business within its capital base as evidenced by improved risk-based capitalization manifested in significantly increased Best?s Capital Adequacy Ratio (BCAR) scores. AM Best expects the captive to return to improved profitability in the near term, better aligning with an adequate operating performance assessment.

AM Best expects Centerline?s risk-adjusted capitalization, as measured by BCAR, to remain at the strongest level over the medium term, supported by a conservative investment allocation and modest internal capital generation.

The adequate operating performance assessment considers Centerline?s ability to achieve its targeted operating results, primarily driven by underwriting profits from the company?s very profitable per-shipment cargo and trailer insurance products.

AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best?s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

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.

Copyright ? 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Source: AM Best

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