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AM Best Revises Issuer Credit Rating Outlook to Negative for Queen City Assurance, Inc. and Vine Court Assurance Incorporated

KR
  • AM Best revised the Long-Term-Issuer Credit Rating outlook for Queen City Assurance Group from stable to negative while affirming its A (Excellent) Financial Strength Rating & "a+" Long-Term ICR.
  • The negative outlook reflects concerns over deteriorating underwriting performance driven by high property losses in 2024 & elevated casualty losses with adverse reserve development in 2025.
  • Despite underwriting weaknesses, overall earnings remained positive in recent years due to solid investment income.
  • The group maintains a "strongest" level of risk-adjusted capitalization, strong liquidity measures, & a conservative investment philosophy.
  • Queen City Assurance Group operates as a single-parent captive for The Kroger Co., receiving expected financial support & flexibility from its publicly traded parent.
  • The neutral business profile assessment is based on the group's diversified range of property/casualty coverages provided to Kroger's extensive operations.