OLDWICK, N.J.–(BUSINESS WIRE)–#insurance—AM Best has downgraded the Financial Strength Rating (FSR) to C++ (Marginal) from B- (Fair) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “b+” (Marginal) from “bb-” (Fair) of Southern General Insurance Company (SGIC) (Atlanta, GA). The outlook of the FSR has been revised to stable from negative, while the outlook of the Long-Term ICR is negative. Concurrently, AM Best has withdrawn the Credit Ratings (ratings) as the company has requested to no longer participate in AM Best’s interactive rating process.
The ratings reflect SGIC’s balance sheet strength, which AM Best assesses as weak, as well as its marginal operating performance, limited business profile and marginal enterprise risk management.
The rating actions reflect weakening in SGIC’s balance sheet due to continued surplus erosion in the past five years, although stable through the third quarter of 2025. The decline in policyholders’ surplus has outpaced the reduction in net premium volume, while liquidity has trended downward as non-affiliated invested assets have contracted and liabilities have continued to expand. Despite continued reserve strengthening, the company has experienced adverse accident-year reserve development in each of the past 10 years.
AM Best assesses SGIC’s operating performance as marginal due to volatile underwriting results in recent years. The company’s underwriting results declined over the past five-year period, due to persistent inflation, labor constraints, and supply chain disruptions originating in 2020. The company implemented underwriting and claims changes, which look to have stabilized results as seen by improved underwriting performance in 2024 and through the third quarter of 2025.
AM Best assesses SGIC’s business profile as limited, reflecting its geographic concentration in Georgia and North Carolina and limited product offering, as well as susceptibility to competitive market pressures.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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