Nationwide Affinity Insurance Company of America is an insurance company. Headquartered in Columbus, Ohio. It provides fire insurance products to individuals, businesses, and institutions. The company was established in 1924. And it operates as a subsidiary of Nationwide Insurance Group. The executive management team is responsible for managing its assets. This article will provide an overview of the company’s ratings and financial strength. It is a good place to begin researching Nationwide Affinity‘s financial strength.
Am Best has affirmed the Financial Strength Rating (FSR) of A+ – Nationwide Affinity
AM Best is a global credit rating agency and news publisher. Its headquartered in the U.S. but does business in more than 100 countries. The company maintains regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore, and Mexico City. Its financial strength rating is published every year. And it is based on qualitative and quantitative criteria. A+ ratings indicate a stable company.
Am Best has affirmed HM Life Insurance Company of New York’s Long-Term Issuer Credit Rating of “A+”. The outlook for the HM Insurance Group remains stable. Additionally, HM’s financial strength rating has been upgraded to “A+” from “A+”.
AM Best has affirmed the A+ financial strength rating for Nationwide Life Insurance Company for 2020. The company’s balance sheet and claims-paying ability have helped it earn this top rating. The company’s customer satisfaction score has been downgraded to Baa. which is below the minimum threshold of “A”.
Following the review, the company’s financial strength rating remains stable. The company’s underwriting performance may be challenging in the near term. While its overall surplus position has improved since 2009, severe weather-related losses have hampered its results. Additionally, a deterioration in underwriting performance could put additional downward pressure on Nationwide’s FSR. Nationwide Affinity Indemnity Company, the claims subsidiary of Nationwide Affinity Insurance Company, maintains a B+ rating. This subsidiary focuses on environmental and asbestos claims. Nationwide Affinity Insurance Company can make a claim.
The Long-Term Issuer Credit Rating (LTIC) of “aa-”
In October 2014, CRISIL Ratings reaffirmed its ratings on debt instruments issued by L&T Infra Credit Limited. The erstwhile L&T Infra Debt Fund Limited is a part of the L&T Financial Services group comprising L&T Finance Holdings Limited (LTFH) and its subsidiaries and associates. While Rs. No current securities issued. 532 crore non-convertible debentures rated cancel. Hence rating the company ‘aa-‘ under CRISIL’s withdrawal policy.
Although the crisis has caused a great deal of attention, the rating actions have been relatively modest. While the media focuses on the peripheral countries, rating actions have been modest. For example, S&P’s current AA rating for Spain is just one notch lower than its rating for the US. In contrast, Fitch’s LTIC of ‘aa-‘ indicates that it is likely to be downgraded in the future.
Ireland’s LTIC of “aa-” reflected the reversal of Ireland’s credit rating from late 1998 to early 2009. The first downgrade was due to unfavorable business cycle forecasts. However, spreads have since stabilized at around one and a half points. This is much better than the six-point spreads experienced by Greece, Ireland, and Portugal in early 2010.
Greece’s deficits were at or above 10% of GDP, and despite forecasts, the downgrade did not go above two notches. Greece’s interest spreads declined after the first round of downgrade in 2010, but they increased again in early 2010 to one and a half pp at the beginning of the second round in spring 2011. This downgrade occurred as the government and political situation became unstable and the interim government needed support from the EU and IMF.
Fitch Ratings is one of the largest independent rating agencies. It employs over 2100 professionals in 50 offices globally. Its primary market is the United States. Its largest office is in New York. LTIC is “aa-” and the most reliable rating available for the company. But what critics have pointed to is the agency’s US parent, Fitch. And it favors its European owner.
The credibility of a rating agency is essential for authoritative knowledge. The market share of the major three agencies isn’t easy to win. During 2009, Fitch, Moody’s, and S&P together accounted for 97 percent of all outstanding ratings. Unless the European Union approves of a new EU-owned CRA, it would have to convince the entire rating market to pay its commission. Furthermore, the EU’s patronage would diminish the credibility of the quasi-public agency.
