AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings to “a” (Excellent) from “a-” (Excellent) of Louisiana Dealer Services Insurance, Inc. (LDS) and its subsidiaries, Loss Deficiency Surety Insurance Company, Inc. and Versant Casualty Insurance Company.
All companies are headquartered in Baton Rouge. Louisiana and are collectively referred to as LDS Group. The outlooks of these Credit Ratings (ratings) are stable.
The ratings reflect LDS Group’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
The LDS Group maintains an established market position as a vehicle service contract provider and mechanical breakdown insurer predominantly in Louisiana and Mississippi. The LDS Group offers credit and gap insurance among other products.
According to AM Best, the rating upgrades reflect the supportive improvement in LDS Group’s balance sheet strength which is underpinned by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), its conservative investment portfolio and sound liquidity measures. AM Best cites strong surplus growth that was achieved over the last five years and reduced exposure to weather-related events.