AM Best Affirms Superior Credit Ratings for Houston Casualty Group

AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of aa+ (Superior) for the property/casualty (P/C) members of Houston Casualty Group, headquartered mainly in Houston, TX, along with HCC Reinsurance Company Limited in Bermuda. Similarly, HCC Life Insurance Company, based in Indianapolis, IN, received confirmation of its A++ FSR and aa+ Long-Term ICR with a stable outlook.

These ratings reflect AM Best's assessment of the group's strongest consolidated balance sheet strength, consistent operational performance, and robust enterprise risk management (ERM).

The P/C segment benefits from sustained strong underwriting results across multiple cycles, driven by advanced pricing strategies and risk management complemented by consistent investment returns. Houston Casualty's ability to retain earnings serves to maintain capital adequacy aligned with its risk appetite while allowing for substantial dividends. The group is recognized as a leader in specialty markets with significant diversification by product lines, jurisdictions, and distribution channels.

Support from Tokio Marine & Nichido Fire Insurance Co., Ltd., a principal company within Tokio Marine Holdings, enhances the group's ratings through operational synergies, reinsurance backing, and superior capital modeling exceeding industry peers. This affiliation contributes additional operational and financial stability to Houston Casualty and its affiliates.

HCC Life Insurance Company's ratings owe to its very strong balance sheet strength, favorable operating results, and high ERM standards, supported by its affiliation with Houston Casualty Group. It maintains strong risk-adjusted capitalization through disciplined underwriting and prudent expense management, holding a dominant position in the medical stop-loss insurance market. However, its concentration in this line is a noted consideration in the rating evaluation.

The affirmed ratings with stable outlooks reinforce Houston Casualty Group members' financial solidity and operational proficiency, relevant for insurers and market participants monitoring specialty insurance providers and risk management effectiveness in the current U.S. insurance landscape.