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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MARCH 21, 2007 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent) and the issuer credit ratings (ICR) of "a-" of the GeoVera Insurance Group (GeoVera) and its members. The group consists of the following four operating entities: GeoVera Insurance Company, GeoVera Specialty Insurance Company, Pacific Select Property Insurance Company and GeoVera Re, Ltd. (Bermuda). The outlook for all ratings is stable. All companies are domiciled in Fairfield, CA, unless otherwise specified.
The ratings reflect GeoVera's favorable risk-adjusted capitalization, moderate underwriting leverage and management's experience in its market segment. GeoVera focuses on underwriting catastrophe-exposed residential property risks, primarily in California, Florida and Texas. An inter-company pooling agreement is in place among the three U.S.-based entities, with 50% of the pooled results being assumed by GeoVera Re, Ltd. through a quota share reinsurance agreement.
Partially offsetting these positive rating factors is GeoVera's geographic concentration of risk in catastrophe-prone areas. However, GeoVera combines an established catastrophe modeled web-based quoting/binding system to ensure proper pricing, with an extensive catastrophe reinsurance program to mitigate its exposure.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.
Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors.