‘A minus’ for GFS risk retention group
–01 February 2008
Ratings agency AM Best has assigned a financial strength rating (FSR) of A- (Excellent) and an issuer credit rating (ICR) of “a-” to GSFS Risk Retention Group. The outlook for both ratings is stable.
These rating actions reflect GSFS RRG’s “solid capitalisation, overall profitable operating results and the additional financial benefits derived from its affiliation with Gulf States Financial Services, Inc.”.
Partially offsetting these positive rating factors is the company’s fluctuating underwriting income over a five-year period and GSFS RRG 's exposure to concentration risk derived from its defined mission of providing contractual liability insurance coverage to GS Administrators, Inc. (GSA), a writer of extended auto warranty coverage, and GS Warranty Services, Inc. (GSWS), a writer of used auto warranty coverage.
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