Best’s News & Research Service - November 27, 2007 12:27 PM (EST)
A.M. Best Assigns Rating and Revises Rating Outlook to Positive for Caring Communities Insurance Company
OLDWICK, N.J. //BestWire// - A.M. Best Co. has assigned an issuer credit rating (ICR) of “bbb-” and affirmed the financial strength rating (FSR) of B+ (Good) of Caring Communities Insurance Company’s (CCIC) (Cayman Islands). The outlook for the FSR has been revised to positive from stable, and the outlook assigned to the ICR is positive.
These rating actions reflect CCIC’s secure risk-adjusted capitalization, good geographic spread of risk and consistently profitable operating results. Also, significant cash flow from underwriting and operations coupled with a prudently conservative investment portfolio have a positive influence on the ratings. Selective underwriting, tailored loss control and engineering services designed for facilities caring for the elderly and a claims approach focusing on the liability risks within the elder care setting has resulted in 100% policyholder retention since inception.
Partially offsetting these positive rating factors is CCIC’s claims-made book of long-tail liability business that has not reached maturity, coupled with a reinsurance program that historically results in a moderately high reserve leverage statistic.
Because CCIC’s primary mission is to provide stable coverage into the future to its owner/policyholders, it has, since its inception, generated a net profit. It has also recordedcombined ratios that outperform its peers by a significant margin. The investment portfolio is invested in a diverse mix of assets that results in a conservative portfolio that yields a reasonable return.
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