Credit Rating for San Diego-Based Auto Insurer Is DowngradedFriday, March 28, 2014
A.M. Best, a New Jersey-based firm that rates the financial health of insurers, said it downgraded the issuer credit rating for San Diego-based auto insurer Anchor General Insurance Co. from bbb+ to bbb, and affirmed the financial strength rating at B++ (Good).
A.M. Best said, “the rating actions reflect Anchor General’s recent decline in risk-adjusted capitalization due to significant premium and policy growth that led to elevated underwriting leverage measures when compared to other similarly-rated entities and the nonstandard auto composite.”
Abe Badani, chief executive of Anchor General Insurance, said, “The reason we were downgraded was because of the amount of growth we had in the last two years.”
Badani declined to reveal revenue, but it has about 200 employees locally, and 220 in total. He said the business increased its premium revenue by 40 percent over the last two years. The rating doesn’t affect the company's ability to borrow money, Badani said.