Anchor General outlook revised to positive as AM Best affirms ratings

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Anchor General outlook revised

Highlights

AM Best revised outlooks to positive from stable and affirmed B+ Financial Strength Rating and 'bbb-' Long-Term Issuer Credit Ratings for Anchor General Insurance Company and Pacific Star Insurance Company.
The positive outlook reflects improved risk-adjusted capitalization, lower underwriting leverage, policyholder surplus appreciation in four of the past five years, and favorable reserve trends.
Anchor General's planned business growth in 2026 introduces execution risk, but capital discipline and reserve strength support ratings despite declining premium volume.

Rating action reflects stronger capital position

As reported by AM Best, the agency revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Ratings of "bbb-" (Good) for Anchor General Insurance Company of San Diego and Pacific Star Insurance Company of Madison, collectively referred to as Anchor General.

AM Best says the ratings reflect the insurer group's adequate balance sheet strength, adequate operating performance, limited business profile and appropriate enterprise risk management. The revised outlook on balance sheet strength follows sustained improvement in risk-adjusted capitalization, as measured by Best's Capital Adequacy Ratio, lower underwriting leverage and policyholder surplus appreciation in four of the past five years.

Policyholder surplus improves in recent years on the back of favorable operating performance, despite a reduction in premiums written through year-end 2025. AM Best also notes that reserve development trends are largely favorable, with Anchor General reporting redundant reserves in six of the past nine calendar and accident years.

Growth plans in 2026 add execution risk

AM Best indicates there are potential risks as Anchor General opts to grow its business in 2026. That expansion plan comes after a period in which the company strengthens capital and underwriting measures, factors that support the improved outlook.

For the U.S. property and casualty insurance sector, the rating action signals that capital discipline and favorable reserve performance remain central to outlook improvements even when premium volume declines. The positive revision may also support Anchor General's market positioning as it pursues growth while managing underwriting and balance sheet risks.

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