AM Best improves credit ratings of Anchor General Insurance Company and Pacific Star Insurance Company

OLDWICK, NJ–(BUSINESS WIRE)–AM Best upgraded Anchor General Insurance Company’s financial strength rating from B+ (good) to B (fair) and the issuer’s long-term credit rating to “bbb-” (good) from “bb+” (fair) (Anchor General) (San Diego, CA) and Pacific Star Insurance Company (Pacific Star) (Madison, WI), which is a subsidiary of Anchor General. The outlook for these credit ratings (ratings) has been revised from positive to stable.

Anchor General’s ratings reflect the strength of its balance sheet, which AM Best assesses as adequate, as well as adequate operating performance, a limited business profile and appropriate enterprise risk management (ERM). Pacific Star’s ratings reflect the strength of its balance sheet, which AM Best assesses as very strong, as well as adequate operating performance, a limited business profile, appropriate ERM and a rating downturn due to its direct ownership by AnchorGeneral.

Anchor General’s ratings review is based on the increased strength of its balance sheet in recent years, primarily due to improved policyholder surplus growth, stabilizing loss provisioning trends and reduction of underwriting leverage measures over a period of five years. However, Anchor General’s net written premium is expected to increase significantly in 2022 due to a change in its quota retention to 55% from 15% in previous years. Management’s decision is to retain more of the profitable business, which presents the opportunity to take rate increases on the new renewal portfolio and the focus continues to be on key producers historically. profitable. Pacific Star’s ratings overhaul is based on the rating drag reduction of its parent, Anchor General.

Anchor General and Pacific Star management implemented numerous corrective initiatives and strategies early in the past five-year period, including significant rate increases, agency management and risk mitigation initiatives. As a result, the impact of these changes has significantly improved Anchor General’s and Pacific Star’s underwriting and operating results, surplus position, as well as the companies’ risk-adjusted capitalization. These positive rating factors are partially offset by the limited business profiles of Anchor General and Pacific Star, primarily due to geographic concentration and products as private passenger non-standard automobile writers primarily in California, which exposes both companies to market, regulatory, legislative and legal risks.

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 relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Assessment Activity Web page. For more information on the use and limitations of credit rating opinions, please see Best Credit Score Guide. For more 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, please see Guide to 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 more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

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Justin D. O'Neill