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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - OCTOBER 08, 2012 12:00 AM (EDT)
A.M. Best Co. has upgraded the issuer credit rating (ICR) to “a+” from “a” and affirmed the financial strength rating of A (Excellent) of Alaska National Insurance Company (ANIC) (Anchorage, AK). The outlook for both ratings is stable.
The ICR upgrade reflects ANIC’s strengthened capitalization as a result of its continued solid underwriting and investment performance as well as management’s proven track record of managing through market cycles. ANIC has reported continuous improvement in its risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), to levels more than supportive of its ratings.
ANIC’s regional market focus (with an emphasis on underwriting fundamentals) and conservative operating strategies has contributed to strong operating results over the long term. Other positive rating factors include the company’s successful risk management program, consistent policyholder retention rates and diversification into other types of commercial lines business in the Pacific Northwest.
While A.M. Best believes that ANIC is well positioned at its current rating level, a significant deterioration in its operating results over the long term beyond A.M. Best’s expectations could cause negative rating pressure.
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” and “Understanding BCAR for Property/Casualty Insurers.” 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.