AM Best revises the issuer credit rating outlook to stable for Insurance Company of the West and its subsidiaries

ALDUICK, NJ, December 7, 2023—(BUSINESS WIRE)–AM Best revised the outlook to stable from positive on the issuer’s long-term credit ratings (Long-Term ICR) and affirmed the financial strength rating (FSR) of A (excellent) and the long-term ICR of “a” (excellent) on Insurance Company of the West (headquartered in San Diego, California) and its consolidated subsidiaries, collectively referred to as the ICW Group. (See below for a detailed list of subsidiaries.) FSR’s outlook is stable.

The credit ratings (ratings) reflect the strength of ICW Group’s balance sheet, which AM Best rates as the strongest, as well as its strong operating results, limited business profile and appropriate corporate risk management.

The revised long-term outlook for ICR to stable from positive reflects the potential performance risks associated with aggressive growth in the group’s putative reinsurance business, including the potential for greater volatility in operating results going forward and increased risk of asset aggregation as a result of this expansion . In addition, while the strength of the group’s balance sheet is supported by its strongest level of risk-adjusted capitalization, as measured by Best’s capital adequacy ratio (BCAR), this level of growth has led to a decline in the group’s risk-adjusted capitalization and its overall balance sheet strength. While the group maintains a strong position in the California workers’ compensation (WC) market and has expanded that business outside of California in recent years, ICW Group’s WC business remains concentrated in California, subjecting the group to the state’s regulatory, judicial and economic environment and its highly competitive market conditions.

The FSR of A (Excellent) and the Long-Term ICR of ‘a’ (Excellent) are affirmed, with the Long-Term ICR Outlook revised to Stable from Positive, while the FSR Outlook is Stable for the following consolidated subsidiaries of Insurance Company of the West:

  • Explorer Insurance Company

  • ICW Accident Insurance Company

  • ICW National Insurance Company

  • ICW Premier Insurance Company

  • VerTerra Insurance Company

This press release refers to the credit ratings that are published on the AM Best website. For all rating information relating to the release and relevant disclosures, including details of the agency responsible for issuing each of the individual ratings set out in this release, please see AM Best’s Recent assessment activity Web page. For additional information on the use and limitations of credit score opinions, please see Guide to Best Credit Ratings. For information on the proper use of Best’s credit ratings, Best’s performance ratings, Best’s preliminary credit ratings, and AM Best’s press releases, see A guide to the proper use of Best’s ratings and reviews.

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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information visit

Copyright © 2023 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Christine De Palma, CPCU, ARM
A financial analyst
+1 908 882 1732
[email protected]

Robert Valenta, CPCU
Senior Financial Analyst
+1 908 882 2407
[email protected]

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
[email protected]

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
[email protected]

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