AM Best Rating Changes Impacting American Southern and Bankers Fidelity

AM Best has reduced the Financial Strength Rating (FSR) and Long-Term Issuer Credit Ratings (Long-Term ICRs) of American Southern Insurance Company and its subsidiary, American Safety Insurance Company, from A (Excellent) to A- (Excellent). The parent company, Atlantic American Corporation, has retained its Long-Term ICR rating of “bbb-” (Good), although its outlook has shifted from stable to negative. In contrast, AM Best affirmed the FSR and Long-Term ICRs for Bankers Fidelity Life Insurance Company and its subsidiaries, maintaining their stable outlook.

The rating changes for American Southern Group are primarily due to a decrease in risk-adjusted capitalization, moving from very strong to strong as evaluated by Best's Capital Adequacy Ratio (BCAR). This shift is largely a result of reserve strengthening and unfavorable developments in their commercial auto liability segment. AM Best is actively monitoring the company's capital management strategies and financial flexibility amid these challenges.

Bankers Fidelity Life Insurance Group maintains strong risk-adjusted capitalization, bolstered by reliable access to credit and sufficient liquidity. While there has been some underwriting volatility, the group has generally achieved positive net income, with the exception of 2021. This stability is supported by rate adjustments, strict underwriting for Medicare supplements, and diversification into ancillary health and life insurance products.

AM Best also noted that Atlantic American Corporation filed for an extension to complete its 2025 Form 10-K due to updates involving ASU 2018-12, though no significant operational changes are anticipated. For more information on these ratings and disclosures, AM Best recommends visiting their Recent Rating Activity page. As a leading credit rating agency and information provider in the insurance sector, AM Best operates internationally with offices in multiple major cities.