Agency withdraws rating from St. Pete’s AmCap Assurance
March 26, 2021 - AM Best, a credit rating agency specializing in the insurance industry, withdrew its ratings from American Capital Assurance Corp. AmCap, based in St. Petersburg, said it no longer wanted to take part in AM Best’s interactive rating process, according to a news release. AM Best downgraded the financial strength rating and the long-term issuer credit rating of AmCap earlier this month. AmCap, a commercial property and flood insurance company, had net underwriting losses from multiple severe weather events in the second half of 2020, particularly in Louisiana, as well as losses from the Texas freeze weather event in February, AM Best said. AmCap management has communicated near-term strategic initiatives that are designed to immediately improve risk-adjusted capitalization and stabilize operating results, according to AM Best. Demotech, another insurance industry credit rating agency, separately has withdrawn its rating from AmCap.