Earnings & Results
AM Best Revises Anchor General and Pacific Star Outlooks to Positive on Stronger Capital
By News Desk ·
Key takeaways
- AM Best revised the outlooks to positive from stable for Anchor General Insurance Company and subsidiary Pacific Star Insurance Company.
- AM Best affirmed the B+ financial strength rating and bbb- long-term issuer credit ratings for both insurers.
- Policyholder surplus improved in four of the past five years, and Anchor General reported redundant reserves in six of the past nine calendar and accident years.
AM Best revised its outlooks to positive from stable and affirmed the B+ (Good) financial strength rating and bbb- (Good) long-term issuer credit ratings of Anchor General Insurance Company and its subsidiary, Pacific Star Insurance Company, Business Wire reported on November 4, 2026. Anchor General is based in San Diego, California, and Pacific Star in Madison, Wisconsin.
Why AM Best Moved Anchor General's Outlook
AM Best assesses Anchor General's balance sheet strength as adequate, alongside adequate operating performance, a limited business profile and appropriate enterprise risk management. The outlook revision reflects sustained improvement in risk-adjusted capitalization as measured by Best's Capital Adequacy Ratio, lower underwriting leverage and policyholder surplus appreciation in four of the past five years.
Policyholder surplus has improved in recent years from favorable operating performance despite a reduction in premiums written through year-end 2025. AM Best flagged potential risks as Anchor General opts to grow its business in 2026. Reserve development trends have been largely favorable, with Anchor General reporting redundant reserves in six of the past nine calendar and accident years.
Separately, The future of trading reported that AM Best affirmed Peña Verde's long-term issuer credit rating at 'bbb' with a stable outlook on November 3, 2026.
AM Best's Rating Business
AM Best is a privately held global credit rating agency and data analytics provider serving the insurance industry, operating in over 100 countries, according to akta.pro company records. The company was founded in 1899 and is headquartered in Oldwick, USA, with a headcount range of 501-1000 and a revenue estimate of $100 million-$250 million. The same records put its valuation estimate at $500 million-$1 billion.
Earlier AM Best Rating Actions
On November 4, 2026, AM Best affirmed the A- financial strength rating and a- long-term issuer credit rating of Knighthead Annuity and Merit Life with stable outlooks, and assigned a bbb rating to $75 million of surplus notes due 2046, FinancialContent Business Page reported. That same day, AM Best revised the under-review implications to developing from negative for Premia Reinsurance Europe's B++ financial strength rating and bbb long-term issuer credit rating, according to FinancialContent Business Page.
On November 3, 2026, AM Best revised the outlooks to positive from stable for Funeral Directors Life Insurance Company and affirmed its A- financial strength rating and a- long-term issuer credit rating, FinancialContent Business Page reported.
AM Best's December 8 Webinar
AM Best will host a complimentary webinar on December 8, 2026, on building confidence in insurance data, regulation and consumer protection, FinancialContent Business Page reported. The one-hour session features LexisNexis Risk Solutions experts discussing data privacy, AI solutions and third-party governance.