AM Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” (Good) from “bbb” (Good) and affirmed the Financial Strength Rating (FSR) of B++ (Good) of Guardian Insurance Company, Inc. (Guardian) (St. Thomas, U.S. Virgin Islands). The outlook of the Long-Term ICR has been revised to stable from positive while the FSR is stable.

The Credit Ratings (ratings) reflect Guardian’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The Long-Term ICR upgrade reflects Guardian’s sustained positive operating results over the past four years based on underwriting income gains buttressed by growing net investment income. The positive underwriting results were aided by its pure loss ratio, which favorably compares with the private passenger non-standard auto composite average; however, it is partially offset by an elevated underwriting expense ratio, primarily driven by higher overhead costs.

Furthermore, Guardian has reported profitable pre-tax and total return and combined ratio measures that favorably compare with the composite averages over the past five years. This is largely driven by favorable operating earnings, which are due to improved underwriting performance from profitability initiatives implemented by management, which included targeted rate increases, higher deductibles, strict underwriting guidelines, improved claim processing and enhanced loss reserving practices. Also contributing to the improved profitability was the benign weather patterns over the last few years. In addition, the company’s consistent operating performance metrics can be attributed to its solid agency relationships and experienced management and ownership teams. AM Best expects this favorable profitability trend to continue.

Guardian maintains a neutral business profile assessment based on its market share position as the leading domestic carrier in the U.S. Virgin Islands.

AM Best considers Guardian’s ERM program to be appropriate for its size and scope of operations, which allows it to monitor its concentration of risks and purchase an appropriate reinsurance program to mitigate them.

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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 www.ambest.com.

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