Market Overview

AM Best Upgrades Credit Ratings for Members of Arbella Insurance Group


AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings to "a" from "a-" of Arbella Mutual Insurance Company and its three pooled insurance entities: Covenant Insurance Company (Farmington, CT), Arbella Indemnity Insurance Company and Arbella Protection Insurance Company. These companies are collectively known as Arbella Insurance Group (Arbella). The outlook of these Credit Ratings (ratings) has been revised to stable from positive. All companies are domiciled in Quincy, MA, unless otherwise specified.

The ratings of Arbella reflect the group's balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The ratings upgrades reflect Arbella's strengthened risk-adjusted capitalization, supported by favorable trends in surplus growth and loss reserve development, as well as an enhanced reinsurance program. AM Best expects further improvement in risk-adjusted capitalization as the group continues to grow surplus through profitable operations and maintains its more robust reinsurance structure.

Additionally, the ratings reflect adequate operating performance, driven by key metrics that are in line with the private passenger standard auto and homeowners composite five-year averages, inclusive of pre-tax return on revenue, combined ratio and operating ratio. The ratings also reflect Arbella's business profile, which is considered neutral, as the group's focused geographic concentration is partially mitigated by the proven ability to effectively operate within its territories by capitalizing on enhanced data analytics and pricing programs. Furthermore, the ERM program is appropriate for the risk profile of the organization.

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. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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