A.M. Best has reduced Tower Group’s Best rating from A- excellent to B++ good. Even though B++ is still considered by Best to be “good”, there is always a concern when a carriers rating is downgraded, but especially when it falls below A-, as this could be an indication of further downgrades to come.
Tower Group has been a partner carrier of SAN Group for many years, We sincerely wish the best for Tower during this difficult time, but our most pressing responsibility always, is to protect our insured’s. The following Tower companies have been downgraded by AM Best*
- CastlePoint Insurance Co. & CastlePoint National Insurance Co.
- Tower Insurance Co of New York
- Tower National Insurance Co.
- Preserver Insurance Company
- North East Insurance Co.
- Hermitage Insurance Co.
- CastlePoint Florida Insurance Co.
- Kodiak Insurance Co.
- York Insurance Co of Maine
- Massachusetts Homeland Insurance Co.
*Adirondack Insurance, a reciprocal company managed by Tower in New York State, is not rated by A.M. Best. However, it is possible that some Adirondack policies have renewed onto Tower paper.
What does this rating downgrade mean to you
Sometimes carriers who are downgraded are able to recover, and bring their ratings back to comfortable levels. Historically however, there have been cases when rating downgrades, signaled serious internal financial problems with a carrier, which escalated into insolvency, receivership or bankruptcy. We all hope for the best, but it’s a sound business decision to be prepared for the worse.