Bell United Insurance Company Downgraded by AM Best

On March 27, 2026, AM Best announced a downgrade of the Financial Strength Rating (FSR) for Bell United Insurance Company, located in Reno, Nevada, dropping it from A- (Excellent) to B++ (Good). Additionally, the Long-Term Issuer Credit Rating (Long-Term ICR) was downgraded from "a-" (Excellent) to "bbb+" (Good), with the Long-Term ICR outlook revised from stable to negative. The outlook for the FSR, however, remains stable.

The revised ratings reflect Bell United’s underlying financial fundamentals, which are rated as very strong by AM Best due to the company's solid balance sheet. However, Bell United displays marginal operating performance and a limited business profile, though its enterprise risk management is considered appropriate.

A crucial factor for these rating modifications is the recent decline in Bell United's operating results, particularly in underwriting, exacerbated by increased loss incidents. This scenario has led to higher combined ratios, which are trailing behind both the peer group composite and the broader property-casualty industry over the past three years. These challenges are primarily due to significant underwriting losses.

In the second quarter of 2023, Bell United reported heightened volatility in underwriting due to increased severity. The company also faced negative trends in loss reserve development, demonstrated by unfavorable results over two consecutive calendar years and across the past three accident years.

Following the sale of its affiliate-insured vehicles in January 2025, Bell United experienced a noticeable decline in premium levels. The insurer now focuses solely on third-party business, covering only a third of the vehicles it used to underwrite. Despite implementing significant rate increases to mitigate heightened loss experiences, volatility persists, and underwriting outcomes remain unimproved.

Bell United concentrates on the commercial auto liability market in Nevada, a segment presently challenged by escalating loss costs and social inflation. The negative outlook for the Long-Term ICR is influenced by adverse trends in the company’s loss reserve development, heavily impacted by severity and legal challenges within Nevada’s commercial auto claims environment, which may further strain the ratings.

For more information about these rating actions and disclosures, visit AM Best's website. AM Best provides global credit ratings, news publishing, and data analytics services specialized in the insurance industry, with operations from regional offices in several major cities worldwide.