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Issuer Ranking: North American Non-Life Insurers, Strongest To Weakest

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Issuer Ranking: North American Non-Life Insurers, Strongest To Weakest

S&P Global Ratings has a stable outlook on the North American property/casualty, bond, mortgage, and title insurance industries in 2021, while the global reinsurance sector remains on negative outlook. While capital strength is a key pillar supporting the credit quality of many North American non-life insurers, we also actively surveil their underwriting discipline, risk exposure management, and asset quality. Despite the many pressures caused by the COVID-19 pandemic, market volatility, and a more active catastrophe season, most subsectors performed well in 2020. Variations in performance were tied to the level of exposure to either macroeconomic risks or natural catastrophes.

In general, we expect share buybacks and dividends to grow in 2021 after a hiatus in 2020. Mergers and acquisitions will likely remain high as a way to augment diversification, scale, and market presence. Organic growth will also be stronger as rate increases continue and the economy recovers; meanwhile, we don't expect policyholder rebates to persist. Despite improving interest rates, investment yields will remain suppressed, but investment income will remain a dominant component of earnings.

Below, we have listed all non-life companies we publicly rate from strongest to weakest, based on the financial strength ratings and outlooks as of April 28, 2021. Companies with the same ratings and outlooks are listed alphabetically.

Table 1

North American Property/Casualty Insurers And Reinsurers
Company Sector Country of domicile Holding company rating Financial strength rating Outlook Business risk profile Financial risk profile

United Services Automobile Association

P/C U.S. AA AA+ Stable Very Strong Excellent

Berkshire Hathaway Inc.-Insurance Group

Re/insurance U.S. AA AA+ Stable Very Strong Very Strong

Chubb Ltd.

P/C Switzerland A AA Stable Very Strong Very Strong

Progressive Corp.

P/C U.S. A AA Stable Very Strong Excellent

State Farm Mutual Automobile Insurance Co.

Multiline U.S. NR AA Stable Very Strong Excellent

The Travelers Cos. Inc.

P/C U.S. A AA Stable Very Strong Excellent

Allstate Corp.

Multiline U.S. A- AA- Stable Very Strong Very Strong

ACUITY a Mutual Insurance Co.

P/C U.S. NR A+ Stable Strong Excellent

Alleghany Corp.

Re/insurance U.S. BBB+ A+ Stable Strong Strong

American Financial Group Inc. and P/C subsidiaries*

Multiline U.S. BBB+ A+ Stable Very Strong Satisfactory

American International Group Inc. and P/C subsidiaries§

Multiline U.S. BBB+ A+ CW Negative Very Strong Strong

Arch Capital Group Ltd.

Re/insurance and mortgage insurance Bermuda A- A+ Negative Strong Very Strong

AXIS Capital Holdings Ltd.

Re/insurance Bermuda A- A+ Negative Strong Very Strong

Cincinnati Financial Corp.

Multiline U.S. BBB+ A+ Stable Strong Very Strong

CNA Financial Corp.

P/C U.S. A- A+ Stable Strong Very Strong

Everest Re Group Ltd.

Re/insurance Bermuda A- A+ Stable Very Strong Strong

Factory Mutual Insurance Co.

P/C U.S. NR A+ Stable Very Strong Strong

Hartford Financial Services Group Inc.

P/C U.S. BBB+ A+ Stable Very Strong Strong

Nationwide Mutual Insurance Co.

Multiline U.S. BBB+ A+ Stable Very Strong Strong

Old Republic International Corp.

P/C U.S. BBB+ A+ Stable Strong Excellent

PartnerRe Ltd.

Reinsurance Bermuda A- A+ Negative Very Strong Strong

RenaissanceRe Holdings Ltd.

Reinsurance Bermuda A- A+ Stable Very Strong Strong

W.R. Berkley Corp.

P/C U.S. BBB+ A+ Stable Strong Very Strong

Selective Insurance Group Inc.

P/C U.S. BBB A Stable Strong Strong

American Family Mutual Insurance Co., S.I.

P/C U.S. BBB A Stable Strong Strong

Assurant Inc. and P/C subsidiaries†

P/C U.S. BBB A Stable Strong Strong

Farmers Insurance Exchange

P/C U.S. NR A Stable Strong Fair

First Insurance Co. of Hawaii Ltd.

P/C U.S. NR A Stable Satisfactory Strong

Horace Mann Educators Corp.

Multiline U.S. BBB A Stable Strong Strong

Kemper Corp.

Multiline U.S. BBB A Stable Strong Very Strong

Liberty Mutual Group Inc.

P/C U.S. BBB A Stable Very Strong Satisfactory

Markel Corp.

Re/insurance U.S. BBB A Stable Strong Strong

Oil Insurance Ltd.

Insurance Bermuda NR A Stable Satisfactory Excellent

RLI Corp.

P/C U.S. BBB A Stable Strong Strong

The Hanover Insurance Group Inc.

P/C U.S. BBB A Stable Strong Strong

Associated Electric & Gas Insurance Services Ltd. (AEGIS)

P/C Bermuda NR A- Stable Strong Satisfactory

Argo Group International Holdings Ltd.

Re/insurance U.S. BBB- A- Negative Strong Strong

Co-operators Financial Services Ltd.

Multiline Canada BBB A- Stable Strong Strong

Fairfax Financial Holdings Ltd.

Re/insurance Canada BBB- A- Stable Strong Satisfactory

Fidelis Insurance Holdings Ltd.

Re/insurance Bermuda BBB A- Stable Satisfactory Strong

Greater New York Mutual Insurance Co.

P/C U.S. NR A- Stable Satisfactory Strong

Lancashire Holdings Ltd.

Re/insurance Bermuda BBB A- Stable Strong Strong

Pinnacol Assurance

P/C U.S. NR BBB+ Stable Fair Strong

R.V.I. Guaranty Co. Ltd.

P/C U.S. NR BBB+ Stable Satisfactory Strong

Finial Holdings Inc. (SI to BRK)

In run-off insurance U.S. BBB+ NR Stable Fair Strong

Enstar Group Ltd.

Run-off specialist Bermuda BBB NR Stable Strong Satisfactory

American Steamship Owners Mutual P&I Assoc. Inc.

P/C U.S. NR BBB- Stable Satisfactory Marginal

Hochheim Prairie Farm Mutual Insurance Assn.

P/C U.S. NR B+ Stable Fair Weak

ProAssurance Corp.

P/C U.S. BBB- NR CW Negative Satisfactory Strong
*American Financial Group Inc. U.S. annuity insurance subsidiaries financial strength ratings are 'A+' and on CreditWatch developing. §American International Group Inc. U.S. life insurance subsidiaries financial strength ratings are 'A+' and on CreditWatch developing. †Assurant Inc. life insurance subsidiaries financial strength ratings are 'A' and on CreditWatch developing. NR--Not rated. Ratings as of April 28, 2021. Source: S&P Global Ratings.

Table 2

North American Mortgage Insurers
Company Sector Country of domicile Holding company rating Financial strength rating Outlook Business risk profile Financial risk profile

Sagen MI Canada Inc. (f/k/a Genworth MI Canada Inc.)

Mortgage insurance Canada BBB+ A+ Stable Strong Excellent

Essent Guaranty Inc.

Mortgage insurance U.S. N/A BBB+ Stable Satisfactory Satisfactory

MGIC Investment Corp.

Mortgage insurance U.S. BB+ BBB+ Stable Satisfactory Satisfactory

Radian Group Inc.

Mortgage insurance U.S. BB+ BBB+ Stable Satisfactory Satisfactory

NMI Holdings Inc.

Mortgage insurance U.S. BB BBB Positive Satisfactory Fair

Genworth Financial Inc.

Multiline U.S. B- N/A Negative Satisfactory Marginal

Genworth Mortgage Insurance Corp.

Mortgage insurance U.S. NR BB+ Negative Satisfactory Satisfactory
NR--Not rated. Ratings as of April 28, 2021. Source: S&P Global Ratings.

Table 3

North American Bond Insurers
Company Sector Country of domicile Holding company rating Financial strength rating Outlook Business risk profile Financial risk profile

Assured Guaranty Ltd.

Bond insurance Bermuda A AA Stable Very Strong Very Strong

Build America Mutual Assurance Co.

Bond insurance U.S. NR AA Stable Very Strong Very Strong
NR--Not rated. Ratings as of April 28, 2021. Source: S&P Global Ratings.

Table 4

North American Title Insurers
Company Sector Country of domicile Holding company rating Financial strength rating Outlook Business risk profile Financial risk profile

Fidelity National Financial Inc.

Title services U.S. BBB A Stable Strong Very Strong

First American Financial Corp.

Title services U.S. BBB- A- Stable Satisfactory Very Strong
Ratings as of April 28, 2021. Source: S&P Global Ratings.

This report does not constitute a rating action.

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