Best’s News & Research Service - September 29, 2023 01:11 PM (EDT)
AM Best Removes From Under Review With Developing Implications, Affirms Credit Ratings of California Insurance Co and Affiliates
- September 29, 2023 01:11 PM (EDT)
Oldwick //BestWire// - AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a-” (Excellent) of California Insurance Company (Foster City, CA) and its affiliates, which are collectively referred to as North American Casualty Group (NAC). The outlook assigned to these Credit Ratings (ratings) is negative. (Please see below for a detailed listing of the companies and ratings.)
The ratings reflect NAC’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and marginal enterprise risk management (ERM).
The negative outlook reflects the group’s underwriting performance in recent years, which has been partially impacted by adverse reserve development in 2022. Given the group’s elevated growth in excess and surplus lines business, and the ongoing litigation surrounding the group’s California worker’s compensation business, AM Best remains cautious regarding the outlook of the group’s operating performance trends. AM Best will continue to monitor the group’s underwriting and operating performance in the near term and will act if any additional operational issues arise. The return of NAC’s underwriting performance to its historically strong levels and the timely reporting of audited financials will lessen AM Best’s concerns surrounding the group’s forward-looking operating performance trends.
The FSRs of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) have been removed from under review with developing implications and assigned an outlook of negative for the following affiliates of California Insurance Company, which are collectively referred to as NAC:
- Continental Indemnity Company
- Florida Casualty Insurance Company
- Illinois Insurance Company
- Oklahoma Property and Casualty Insurance Company
- Pennsylvania Insurance Company
- Texas Insurance Company
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.