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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - SEPTEMBER 14, 2012 12:00 AM (EDT)
A.M. Best Co. has assigned a financial strength rating of A (Excellent) and issuer credit ratings of “a+” to Selective Casualty Insurance Company (SCIC) and Selective Fire & Casualty Insurance Company (SFCIC). The outlook assigned to all ratings is stable. Both companies are headquartered in Branchville, NJ.
SCIC and SFCIC are newly formed subsidiaries of Selective Insurance Group, Inc. [NASDAQ: SIGI] and were established to facilitate a more flexible tiered pricing structure in New Jersey.
The ratings assigned to SCIC and SFCIC reflect the explicit support provided by Selective Insurance Company of America in the form of an intercompany pooling agreement, which became effective July 1, 2012. This pooling agreement was executed following the receipt of regulatory approval.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; ”Insurance Holding Company and Debt Ratings”; “Rating New Company Formations”; “Catastrophe Analysis in A.M. Best’s Ratings”; “The Treatment of Terrorism Risk in the Rating Evaluation”; “Understanding BCAR for Property/Casualty Insurers”; and “Rating Members of Insurance Groups.” Best’s Credit Rating Methodology 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.