AM Best


A.M. Best Assigns Rating to Alabama Branch Of Associated General Contractors, of American, Inc. Self-Insurers Fund


CONTACTS:

Analyst(s)

Thomas Herriger

(908) 439-2200, ext. 5375

thomas.herriger@ambest.com

Steven Chirico

(908) 439-2200, ext. 5087

steven.chirico@ambest.com
Public Relations

Jim Peavy

(908) 439-2200, ext. 5644

james.peavy@ambest.com

Rachelle Morrow

(908) 439-2200, ext. 5378

rachelle.morrow@ambest.com


FOR IMMEDIATE RELEASE

OLDWICK, N.J. - JUNE 24, 2008 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent) and assigned an issuer credit rating (ICR) of "a-" to Alabama Branch of Associated General Contractors, of American, Inc. Self-Insurers Fund (AGC) (Irondale, AL). The outlook for the FSR is stable, and the outlook assigned to the ICR is stable.

The ratings reflect the AGC's conservative balance sheet, favorable operating performance and strong member persistency, which is driven by AGC's local presence, high level of service and lucrative profit sharing in the form of policyholder dividends. Strong operating results have enabled members to experience lower premium rates, coverage and price stability and high dividends.

These positive rating factors are offset by AGC's limited product offering and regulatory spread of risk. This limited diversification subjects AGC to competitive pressures in the workers' compensation market as well as economic volatility.

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 global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.

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AMB# Company Name
055028 Alabama Associated Gen Contractors SIF