AM Best

A.M. Best Affirms and Assigns Ratings to Columbia Lloyds; Assigns Ratings to MDOW Insurance Company & Columbia Lloyds Companies

Raymond Thomson
(908) 439-2200, ext. 5621

Jeffrey Mango, CPA
(908) 439-2200, ext. 5204

Public Relations
Jim Peavy
(908) 439-2200, ext. 5644

Rachelle Morrow
(908) 439-2200, ext. 5378


OLDWICK, N.J. - APRIL 27, 2007 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and assigned an issuer credit rating (ICR) of "a" to Columbia Lloyds Insurance Company (Columbia Lloyds). Concurrently, A.M. Best has assigned an FSR of A (Excellent) and ICRs of "a" to the newly created group, Columbia Lloyds Companies, which consists of Columbia Lloyds and its wholly-owned reinsured subsidiary, MDOW Insurance Company (MDOW). The outlook for all ratings is stable. As a result of the group formation, MDOW was assigned an FSR of A (Excellent) and ICR of "a". All companies are domiciled in Houston, TX.

These ratings reflect Columbia Lloyds' continued underwriting profitability, solid risk-adjusted capital position and local market expertise in providing coverages for low value dwellings in Texas. In addition, A.M. Best anticipates that the group will continue to produce favorable underwriting results as it expands geographically into additional states through MDOW.

Partially offsetting these positive rating attributes are the group's continued reinsurance dependence and current narrow geographic spread of risk.

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 full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors.

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