Insurance Daily News

AM Best Upgrades Ratings for Illinois Casualty and Lebanon Valley

AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings to “a” from “a-” for both Illinois Casualty Company (ICC) and Lebanon Valley Insurance Company (LV). The outlook for these ratings has shifted to stable from positive.

These upgrades follow the recent regulatory approval of an intercompany pooling agreement involving ICC, LV, and Tuscarora Wayne Insurance Company (TW), which is set to take effect on July 1, 2026. AM Best anticipates that the business profiles of ICC and LV will strengthen as they become pooled members of the Mutual Capital Insurance Group.

Simultaneously, AM Best affirmed the A (Excellent) Financial Strength Rating and “a” Long-Term Issuer Credit Ratings for Tuscarora Wayne Insurance Company and its affiliate, Keystone National Insurance Company, both of which maintain a stable outlook. The agency’s assessment of the group reflects a very strong balance sheet, adequate operating performance, a neutral business profile, and appropriate enterprise risk management.

Why it matters

The integration of smaller entities into a larger pooling agreement often signals a strategic shift in risk distribution and capital efficiency that industry stakeholders should monitor for future underwriting capacity changes.

FAQ

Which companies received a rating upgrade?
Illinois Casualty Company (ICC) and Lebanon Valley Insurance Company (LV) received upgrades to their Financial Strength and Long-Term Issuer Credit Ratings.

What is the effective date of the new pooling agreement?
The intercompany pooling agreement between TW, LV, and ICC is effective July 1, 2026.

What is the current rating outlook for the group?
The outlook for ICC and LV has been revised to stable, while the outlook for Tuscarora Wayne Insurance Company and Keystone National Insurance Company remains stable.

Source: Insurance Journal. See the original source for full details.