AM Best affirms ratings of select PhenixFIN insurance subsidiaries
- AM Best affirmed financial strength ratings for NSFC and Omega, assigning a stable outlook.
- The under review status for NSIC reflects ongoing balance sheet pressures and the need for recapitalization.
- These adjustments illustrate the financial health of the subsidiaries and their challenges in maintaining solid operational performance.
In Oldwick, New Jersey, on March 14, 2025, AM Best removed from under review and affirmed the Financial Strength Rating (FSR) of 'B' (Fair) for National Security Fire and Casualty Company (NSFC) and 'B-' (Fair) for Omega One Insurance Company, Inc. (Omega). The agency assigned a stable outlook to these ratings, which reflects the companies' efforts to mitigate risks associated with catastrophe events. Additionally, AM Best maintained the under review status for National Security Insurance Company’s (NSIC) rating, citing ongoing pressures on its balance sheet stemming from changes in loss reserve methodologies and issues with annuity business despite receiving a capital injection from its parent, PhenixFIN Corporation. The adjustments in the ratings highlight the financial stability efforts within these subsidiaries aimed at maintaining operational integrity in a challenging environment but also indicate that NSIC must overcome significant hurdles moving forward, including effectively executing recapitalization strategies and improving performance over time to regain a positive standing. The press release signifies AM Best’s continuous monitoring of these entities and acts as an essential indicator of their respective financial health and future prospects within the property/casualty insurance sector.