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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MAY 26, 2010 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating (FSR) of C++ (Marginal) and issuer credit rating (ICR) of "b" of Hereford Insurance Company (Hereford) (Long Island City, NY). The outlook for both ratings is stable. Concurrently, A.M. Best has withdrawn the ratings at the company's request and assigned an NR-4 (Company Request) to the FSR and an "nr" to the ICR.
The ratings reflect Hereford's vulnerable risk-adjusted capitalization, significant dependence on reinsurance, geographic and product concentration, highly competitive conditions in its markets and the potential need at the parent holding company, Hereford Holding Company, Inc., to provide capital support for a recently acquired private passenger automobile insurer.
Offsetting these rating factors is Hereford's solid historical underwriting and operating performance, which is representative of its niche market positions in commercial automobile liability and workers' compensation insurance, focusing on the medallion taxi and for-hire-livery markets throughout New York City.
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.