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AM Best Downgrades Credit Ratings of Bell United Insurance Company

BY Business Wire | CORPORATE | 10:57 AM EDT

OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has downgraded the Financial Strength Rating (FSR) to B++ (Good) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to ?bbb+? (Good) from ?a-? (Excellent) of Bell United Insurance Company (Bell United) (Reno, NV). The outlook of the Long-Term ICR has been revised to negative from stable, while the outlook of the FSR is stable.

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

These rating actions reflect AM Best?s concerns related to Bell United?s operating results deteriorating in recent periods, driven by weaker underwriting performance and elevated loss activity, resulting in higher combined ratios.

Return metrics and underwriting ratios trail the peer group composite and the overall property/casualty industry in the most recent three years largely driven by underwriting losses. Combined ratios, on both a calendar and accident year basis, also trail the peer group composite during this period. Beginning the second quarter of 2023, Bell United experienced underwriting volatility due to higher-than-historical severities. Bell United experienced unfavorable loss reserve development trends reported in recent years, as evidenced by adverse development in two consecutive calendar years and deterioration across the three most recent accident years.

In addition, premium levels decreased drastically after affiliate insureds were sold in January 2025. Bell United insures solely third-party business, which is a third of the vehicles previously insured. Management implemented significant rate increases in the past two years to offset elevated loss experience; however, the volatility remains and underwriting results continue to deteriorate.

Bell United is a single writer for commercial auto liability in Nevada; this sector has been challenged in recent years by rising loss costs and social inflation.

The negative outlook of the Long-Term ICR reflects Bell United?s recent trends of adverse loss reserve development, impacted by severity and difficult legal environment for commercial auto claims in Nevada, which could pressure the overall ratings further.

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 ? 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Source: AM Best

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