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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MARCH 30, 2010 12:00 AM (EDT)
A.M. Best Co. has revised the outlook to positive from stable and affirmed the financial strength rating of A- (Excellent) and issuer credit rating of "a-" of Atlantic Casualty Insurance Company (Atlantic Casualty) (Goldsboro, NC).
The positive outlook reflects the improvement in Atlantic Casualty's risk-adjusted capitalization through year-end 2009 and continued solid operating earnings, despite the negative impacts of ongoing competitive and recessionary pressures and expectations that results will continue to trend favorably.
The ratings reflect Atlantic Casualty's strong risk-adjusted capitalization, solid operating performance, improved underwriting leverage and liquidity. The positive rating factors are derived from management's efforts to improve performance by focusing on the company's historically profitable core general liability book of business, exiting unprofitable books of businesses in troublesome states and improving efficiency through investments in technology.
Partially offsetting these positive factors have been primarily the negative impact of adverse prior accident year loss reserve development on underwriting results, particularly during the earlier portion of the prior five-year period, as well as continued competitive market conditions and the impact of macro economic conditions on exposure levels. The unfavorable development occurred primarily in accident years 2002 and prior in Atlantic Casualty's products liability (completed operations) line of business. However, the aforementioned corrective actions taken by management have resulted in much more favorable loss reserve development trends in recent accident years.
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.