AM Best Places Credit Ratings of Topa Insurance Company and Dorchester Insurance Company, Ltd. Under Review with Negative Implications

OLDWICK, N.J., July 07, 2022–(BUSINESS WIRE)–AM Best has placed under review with negative implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Topa Insurance Company (Calabasas, CA) and its subsidiary, Dorchester Insurance Company, Ltd. (U.S. Virgin Islands). These companies, which collectively are referred to as Topa Insurance Group (Topa), are wholly owned subsidiaries of Topa Equities, Ltd.

The Credit Rating (rating) actions reflect the need for AM Best to have further discussions with company management regarding strategic business initiatives to improve operating performance over the near term. AM Best will review the group’s progress on strategic initiatives, as well as the financial and operational impacts of these initiatives on the group’s operating results. The under review with negative implications status reflects a level of execution risk within the strategic initiatives as management seeks to improve results going forward following deteriorated underwriting results in 2021 and in the first quarter of 2022. In 2021, Topa’s underwriting performance was impacted by further adverse reserve development in the commercial auto liability line, including the group’s bus program in run-off, as well as increased loss severity and a lack of recent rate increases in this line of business. Additional strategic actions implemented by company management recently to improve underwriting performance in the commercial auto line, notably new business moratoriums on certain classes and non-renewal of certain business, are expected to moderate operating performance shortcomings over the intermediate term. AM Best will continue to hold discussions with Topa’s management and monitor the group’s balance sheet strength, operating performance, business profile and enterprise risk management.

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

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