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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JANUARY 05, 2011 12:00 AM (EST)
A.M. Best Co. has assigned a financial strength rating of B++ (Good) and issuer credit rating of "bbb+" to FirstComp Insurance Company (FirstComp) (Omaha, NE). The outlook assigned to both ratings is stable.
On October 15, 2010, Markel Corporation (Markel) [NYSE:MKL] completed its acquisition of Aspen Holdings Inc., the immediate parent of FirstComp.
The ratings reflect FirstComp's adequate risk-adjusted capitalization, favorable historical and prospective underwriting performance and its profile as a provider of workers' compensation and employers' liability coverages for small, main street businesses in underserved rural markets across 31 states. The ratings of FirstComp also are afforded rating enhancement based on the capital resources available from Markel, including the 50% quota share agreement made with a Markel affiliate, Evanston Insurance Company, which covers all business written after November 1, 2010, and the $31.5 million equity infusion made to FirstComp in the fourth quarter of 2010 to offset reserve strengthening.
The principal methodology used in determining these ratings is Best's Credit Rating Methodology - Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best's rating process and highlights the different rating criteria employed. Additional key criteria utilized include: "Risk Management and the Rating Process for Insurance Companies"; "Understanding BCAR for Property/Casualty Insurers"; and "Rating Members of Insurance Groups." Methodologies can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.