AM Best


A.M. Best Revises Outlook to Positive for Ratings of American Strategic Insurance Group and Its Members


CONTACTS:


Analyst(s)

Raymond Thomson

(908) 439-2200, ext. 5621

raymond.thomson@ambest.com



Jeffrey Mango, CPA

(908) 439-2200, ext. 5204

jeffrey.mango@ambest.com


Public Relations

Rachelle Morrow

(908) 439-2200, ext. 5378

rachelle.morrow@ambest.com

Jim Peavy

(908) 439-2200, ext. 5644

james.peavy@ambest.com


FOR IMMEDIATE RELEASE

OLDWICK, N.J. - MARCH 08, 2010 12:00 AM (EST)
A.M. Best Co. has revised the outlook to positive from stable and affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of "a-" of American Strategic Insurance Group (ASI) (St. Petersburg, FL) and its members. (See below for a detailed listing of the companies.)

The ratings reflect ASI's continued underwriting profitability and solid risk-adjusted capitalization resulting from prudent underwriting, innovative pricing systems, effective reinsurance programs and a sound overall risk management focus. As a result, significant surplus growth has occurred in recent years, complemented by continued support from the parent company. The positive outlook contemplates that operating performance and risk-adjusted capitalization will continue to trend favorably in the near and long term, as ASI begins to further diversify its geographical footprint.

These positive rating factors are somewhat offset by ASI's current geographic concentration of risk in Florida and Texas, with subsequent exposure to weather-related events and significant dependence on reinsurance. However, ASI's operating performance and capital strength have enabled it to increase retention in its quota share reinsurance programs, alleviating some concerns with dependence. In addition, the group continues to maintain conservative catastrophe reinsurance coverage.

The FSR of A- (Excellent) and ICRs of "a-" have been affirmed for American Strategic Insurance Group and its following members:

- American Strategic Insurance Corp.

- ASI Assurance Corporation

- ASI Preferred Insurance Corporation

- ASI Lloyds


For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit Best's Ratings & Analysis.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at Best's Credit Rating Methodology.

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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