AM Best has upgraded its outlook on the financial strength rating (A) and long-term issuer credit ratings (a+) of Westfield Insurance Company from negative to stable. This decision reflects the company’s improved operating results projected for 2024.
In a recent statement, AM Best noted that Westfield’s combined ratio for 2024 has fallen below 100%. This improvement stems from a combination of strategic pricing adjustments, revisions to policy terms, and a shift in growth strategy towards more profitable areas, including the surplus lines market.
Westfield is the parent company of Westfield Specialty, led by Jack Kuhn. Westfield Specialty has experienced significant growth since its inception, focusing on specialty and excess and surplus (E&S) insurance.
The rating agency also highlighted the return to positive net income in 2024, which was supported by solid investment outcomes and enhancements in Westfield’s net underwriting results. These improvements occurred despite higher-than-anticipated catastrophe losses due to convective storms and two hurricanes.
AM Best further stated that the company’s risk-adjusted capitalization continues to be at the strongest level under its BCAR framework. The improvement in operating performance also led to surplus growth last year, following a period of decline.
