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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MAY 28, 2008 12:00 AM (EDT)
A.M. Best Co. has upgraded the financial strength rating (FSR) to A (Excellent) from A- (Excellent) and the issuer credit ratings (ICR) to "a" from "a-" of the Companion Property and Casualty Group (Companion), which consists of Companion Property and Casualty Insurance Company (Columbia, SC) and its wholly owned subsidiary, Companion Commercial Insurance Company (Columbia, SC). The rating outlook has been revised to stable from positive.
The upgrades reflects the group's solid capitalization, improved underwriting and operating performance, more favorable reserve development trends as well as prudently managed geographic and product diversification initiatives through its "fee for service" business. The rating also recognizes the significant financial support and flexibility provided by its parent, Blue Cross and Blue Shield of South Carolina, which has contributed substantial amounts of capital in recent years in support of premium growth and expansion initiatives.
Offsetting these positive rating factors is the historical volatility in underwriting performance and capitalization primarily due to adverse loss reserve development. The rating outlook reflects the group's improving underwriting fundamentals, organic growth in surplus and financial flexibility afforded by its parent.
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.