AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Hurst Home Insurance Company, Inc. (HHIC) (Lexington, KY).

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

The negative outlooks reflect the volatility in the company’s operating performance over the past two years. In addition, HHIC experienced a material deterioration in operating results in 2023, reporting its largest underwriting loss in the past five years. Management has implemented a series of underwriting actions to fortify the company’s operating performance including rate increases and stricter underwriting guidelines. The effectiveness of these actions remains to be seen. A continuation of adverse operating results could result in a lowering of the company’s operating performance assessment.

HHIC’s balance sheet strength remains at the very strong level, based on risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), conservative loss reserve leverage measures, low underwriting leverage, prudent investment portfolio, strong liquidity measures and a comprehensive reinsurance program with highly rated partners.

The limited business profile reflects its product and geographic risk concentrations as a writer of primarily property insurance in Kentucky. HHIC’s ERM capabilities align with its modest risk profile.

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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