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FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 05, 2014 03:26 PM (EST)
A.M. Best has upgraded the financial strength rating (FSR) to A (Excellent) from A- (Excellent) and the issuer credit rating (ICR) to "a" from "a-"of ASI Select Insurance Corp (ASI Select) (Wilmington, DE).
Concurrently, A.M. Best has affirmed the FSR of A (Excellent) and the ICRs of "a" of the members of American Strategic Insurance Group (ASIG). ASIG is composed of the lead company American Strategic Insurance Corp (ASIC) (St. Petersburg, FL), ASI Assurance Corp (St. Petersburg, FL), ASI Lloyds (Dallas, TX), ASI Preferred Insurance Corp (St. Petersburg, FL), American Capital Assurance Corp (St. Petersburg, FL), ASI Home Insurance Corp (St. Petersburg, FL) and ASI Select. The outlook for all ratings is stable.
The rating upgrades of ASI Select follow the implementation of a quota share reinsurance agreement in place between ASI Select and ASIC. In addition, capital was injected into ASI Select by ASIC to support the additional writings as a result of the strategy by ASIC's management to increase its business writings in several specific states over the next several years. Prospectively, ASI Select will become a much larger part of ASIG. The rating upgrades are also reflective of ASI Select maintaining an adequate level of capitalization and receiving operational support from ASIG.
The rating affirmations of ASIG are based on the group's continued favorable operating results, strong risk-adjusted capitalization and extensive property risk monitoring and mitigation strategy.
Negative rating actions may occur if the group's operating performance were to materially decline over several years or if capitalization were to diminish to a level that no longer supports its business.
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.
Key insurance criteria reports utilized:
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.