The revised outlooks reflect the declining trends in ERGO Insurance’s risk-adjusted capitalization and operating performance relative to its peers. The company’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), has trended downward due to high dividend payments and retained losses in 2016. Additionally, planned premium growth is expected to increase underwriting leverage, which could further lower its risk-adjusted capitalization going forward.
In response, ERGO Insurance has taken remedial actions by focusing on its historically profitable lines of business and adopting cost reduction measures to improve operating performance.
In response, ERGO Insurance has taken remedial actions by focusing on its historically profitable lines of business and adopting cost reduction measures to improve operating performance.
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