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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - APRIL 24, 2013 12:00 AM (EDT)
A.M. Best Co. has revised the outlook to stable from positive 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 stable outlook reflects A.M. Best's expectations that recently enacted rate increases, the realization of a firming market and ongoing improvements in Atlantic Casualty's systems will, along with its strong risk management culture, enable the company to realize improved earnings in the near term.
The ratings reflect Atlantic Casualty's excellent risk-adjusted capitalization, solid operating performance and sound risk management practices. Partially offsetting these positive rating factors is the downturn in underwriting performance during 2011 and 2012, due to the impact of an accumulation of weather-related losses and soft (albeit firming) market conditions. Other offsetting rating factors include adverse loss reserve development recorded during the 2006-2008 calendar year period on older accident years and the company’s historically elevated underwriting expense ratio. Management also faces the challenge of growing profitably given current market conditions despite Atlantic Casualty's position as a surplus lines writer.
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. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source.