AM Best Affirms Credit Ratings of The Hartford Steam Boiler Group’s Members

OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa+” of the members of The Hartford Steam Boiler Group (HSB). The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the companies.)

The ratings reflect HSB’s balance sheet strength, which AM Best categorizes as strongest, as well as its very strong operating performance, favorable business profile and very strong enterprise risk management (ERM).

HSB’s balance sheet strength assessment is underpinned by its risk-adjusted capitalization being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), as well as its good liquidity, conservative investments allocation and a history of positive reserve development.

HSB has a long track record of very strong underwriting and operating profits. The company’s five-year return of equity (ROE) of 16.5% is materially better than the composite five-year ROE of 4.6%. Likewise, its 10-year ROE of 20.1% also outperforms the composite 10-year ROE of 5.8%. The performance is primarily driven by strong underwriting returns and enhanced by steady stream of investment income. In recent years, the group has seen a slight deterioration in underwriting ratios. This deterioration is mainly due to elevated expenses related to ongoing projects, which are anticipated to improve performance in future years.

The group has a long-standing reputation as a valuable partner to insurance companies throughout the industry. This unique position allows the company to distribute its products throughout the United States, as well as in other markets. Additionally, it allows its partners to access the specialized knowledge and innovative products the group provides to the industry, including Internet of Things (IoT) and other loss control solutions. In recent years, the group has developed innovative solutions to cyber insurance and equipment breakdown policies, including IoT, which have produced favorable returns.

The FSR of A++ (Superior) and the Long-Term ICRs of “aa+” have been affirmed with stable outlooks for the following members of The Hartford Steam Boiler Group:

  • The Hartford Steam Boiler Inspection and Insurance Company
  • The Hartford Steam Boiler Inspection and Insurance Company of Connecticut
  • The Boiler Inspection and Insurance Company of Canada
  • HSB Specialty Insurance Company
  • HSB Engineering Insurance Limited

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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media – Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

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Dan Hofmeister, CFA, CAIA, CPCU, ARe
Financial Analyst
+1 908 439 2200, ext. 5385
[email protected]

Mariza Costa
Associate Director
+1 908 439 2200, ext. 5154
[email protected]

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
[email protected]

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
[email protected]

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