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FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 16, 2015 01:46 PM (EDT)
A.M. Best has downgraded the issuer credit rating (ICR) to "bb" from "bb+" and affirmed the financial strength rating (FSR) of B (Fair) of American Access Casualty Company (AACC) (Chicago, IL). The outlook for the FSR has been revised to negative from stable while the outlook for the ICR remains negative. Concurrently, A.M. Best has withdrawn all ratings due to management's request to no longer participate in A.M. Best's interactive rating process.
The rating actions reflect the decline in AACC's risk-adjusted capitalization as a result of significant premium and exposure growth that has led to unfavorable underwriting leverage measures compared with the non-standard auto composite. Additionally, adverse loss reserve development over the recent three-year period was caused by increased exposure growth and bodily injury losses in Nevada and Illinois and contributed to the overall decline in underwriting profitability in the most-recent five-year period.
However, somewhat offsetting this decline in risk-adjusted capitalization is AACC's prior track record in generating pretax operating profitability due primarily to fee income.
This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best's Ratings & Criteria Center.
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