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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - APRIL 07, 2008 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of "a" of North American Casualty Group and its members, California Insurance Company (San Francisco, CA) and Continental Indemnity Company (Cedar Rapids, IA), which operate under a pooling arrangement. The outlook for all ratings is stable.
The ratings reflect the group's supportive capitalization and the solid historical underwriting performance of business produced by its parent, Applied Underwriters, Inc. (AU), a leading provider of bundled workers' compensation insurance and payroll processing services to small and medium-sized businesses. Furthermore, the ratings reflect the benefits the group receives from the ownership by its ultimate parent, Berkshire Hathaway Inc. (Nebraska) [NYSE: BRK.A and BRK.B]. The ratings also contemplate management's strategic business plans and projections for near-term earnings, capital accumulation and geographic expansion, which are dependent upon the successful execution of the plans and profitable growth.
Partially offsetting these strengths is the group's limited operating experience as well as its concentration in workers' compensation in the California market.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.