American European Ins Co
Major Rating Factors:
Fair long-term capitalization index (3.7 on a scale of 0 to 10) based on fair current risk adjusted capital (severe and moderate loss scenarios), although results have slipped from the excellent range over the last two years. Fair profitability index (4.5) with operating losses during 2022 and 2023. Return on equity has been low, averaging 2.6% over the past five years. Fair overall results on stability tests (3.6) including weak results on operational trends, negative cash flow from operations for 2024 and weak risk adjusted capital in prior years.
Other Rating Factors:
A history of deficient reserves (2.6) that places pressure on both capital and profits. In 2024 the two year reserve development was 39.8% deficient. Good liquidity (6.2) with sufficient resources (cash flows and marketable investments) to handle a spike in claims.
Stability Factors:
C - Past results on our Risk-Adjusted Capital tests.
F - Negative cash flow.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Homeowners (63.5%), comm multi (17.5%), personal/comm auto (8.0%), fire (0.3%), product liab. (0.1%), other (10.5%)
Licensed in:
(No states)
Principal Investments:
Investment grade bonds (41.4%), common stock (36.9%), cash (5.6%), non investment grade bonds (0.9%), preferred stock (0.3%), other (15.0%)
Corporate Info
Group Affiliation
HSI Partnership
Investment Rating
--
Company Address
2250 Chapel Avenue, West
Cherry Hill, NJ 08002
Cherry Hill, NJ 08002
Phone Number
(856) 779-0600
NAIC Number
23337
Website
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