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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MAY 10, 2013 12:00 AM (EDT)
A.M. Best Co. has revised the outlook to stable from negative and affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of Benchmark Insurance Company (BIC) (Lenexa, KS).
The outlook reflects the company's improved risk-adjusted capitalization, improving dependence on reinsurance and the significant improvement in rate adequacy, particularly on its workers' compensation business.
The ratings reflect BIC's strong risk-adjusted capitalization, solid results in its continuing operations and favorable liquidity position. Offsetting these positive factors are continuing, albeit improving, soft market conditions that have presented challenges to the company in growing its specialty program business, adverse loss reserve development and strengthening of reserves for prior years' losses in 2010, and elevated credit risk on the company's reinsurance recoverables.
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.