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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MARCH 30, 2011 02:00 PM (EDT)
A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit ratings of "a" of The Safety Group (Safety) and its inter-company pool members, Safety Insurance Company, Safety Indemnity Insurance Company and Safety Property and Casualty Insurance Company.
Concurrently, A.M. Best has affirmed the ICR of "bbb" of Safety's publicly traded holding company, Safety Insurance Group, Inc. (Delaware) [NASDAQ/GS: SAFT]. The outlook for all ratings is stable. All companies are domiciled in Boston, MA, except where specified.
The ratings of Safety reflect its solid capitalization, trend of strong operating income and its market position as a leading personal automobile writer in Massachusetts. The ratings also acknowledge the group's favorable loss reserve development and low investment leverage.
Partially offsetting these positive rating factors is Safety's concentration of business in Massachusetts that is primarily in the private passenger automobile line. The group's recently increased homeowners' writings provide some product diversification; however, this does create greater property catastrophe risk.
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: "Understanding BCAR for Property/Casualty Insurers"; "Natural Catastrophe Stress Testing Methodology"; "Catastrophe Analysis in A.M. Best Ratings"; "Risk Management and the Rating Process for Insurance Companies"; "Catastrophe Risk Management Incorporated Within the Rating Analysis"; "Rating Members of Insurance Groups"; and "A.M. Best's Ratings & the Treatment of Debt." 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.