A.M. Best Affirms Credit Ratings of The Hartford Steam Boiler Group’s Members

OLDWICK, N.J., July 24, 2019—AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa+” of the members of The Hartford Steam Boiler Group (HSB). The outlook of these Credit Ratings (ratings) remains stable. (See below for a detailed listing of the companies.)

The ratings reflect HSB’s balance sheet strength, which AM Best categorizes as strongest, as well as its very strong operating performance, favorable business profile and very strong enterprise risk management (ERM).

HSB’s balance sheet strength assessment is underpinned by its risk-adjusted capitalization being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as its good liquidity, conservative investments allocation and track record of positive reserves development.

The company has a history of very strong operating earnings, evidenced by a five-year average return on equity of 18.1% (2014-2018). For 2018, the company generated a sound combined ratio of approximately 90%.

HSB has a strong reputation for being a specialist insurer in the U.S. commercial market for boiler and machinery breakdown risks, where it holds a leading market share by premium written. HSB’s business profile also benefits from moderate geographical diversification, which stems from business sourced by the company’s international subsidiaries. ERM is considered to be embedded throughout the whole organization, which has historically put a great focus on loss prevention practices.

The FSR of A++ (Superior) and the Long-Term ICRs of “aa+” have been affirmed with stable outlooks for the following members of The Hartford Steam Boiler Group:

• The Hartford Steam Boiler Inspection and Insurance Company
• The Hartford Steam Boiler Inspection and Insurance Company of Connecticut
• The Boiler Inspection and Insurance Company of Canada (BI&I)
• HSB Specialty Insurance Company
• HSB Engineering Insurance Limited

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. 

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.