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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JUNE 30, 2009 12:00 AM (EDT)
A.M. Best Co. has upgraded the financial strength rating to A- (Excellent) from B++ (Good) and issuer credit rating to "a-" from "bbb" of American Inter-Fidelity Exchange (AIFE) (Merrillville, IN). The outlook for both ratings is stable.
The ratings recognize AIFE's excellent conservative underwriting leverage and excellent liquidity, as well as its consistently strong operating performance.
AIFE has generated substantial profits in recent years primarily through effective underwriting, leading to solid surplus growth through retained earnings. The company also maintains a conservative investment portfolio and has produced positive underwriting and operating cash flows to support its favorable liquidity measures.
Partially offsetting these positive rating factors are AIFE's limited market profile, scale and business diversification. Primarily, the company's business is derived from one major source and is concentrated in commercial trucking liability exposures. Nevertheless, AIFE has demonstrated expertise in underwriting its exposures with overall solid underwriting and operating results.
For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit Best's Ratings & Analysis.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at Best's Credit Rating Methodology.
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.