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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MAY 29, 2008 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 LUBA Casualty Insurance Company (LUBA) (Baton Rouge, LA). The outlook for the FSR is stable, and the outlook assigned to the ICR is stable.
The rating reflects LUBA's adequate risk-adjusted capitalization, excellent operating performance and strong business profile in the Louisiana workers' compensation market. These positive rating factors are somewhat offset by the company's business concentration in a single line and single state, which magnifies its exposure to competition and adverse economic and regulatory changes.
LUBA maintains moderate leverage measures, and its balance sheet strength is supported by a conservative investment portfolio and a suitable reinsurance program. While controlling its growth, LUBA retains a very high percentage of its policyholders and has become one of Louisiana's largest writers of workers' compensation business, offering coverage to a large and diverse population of mostly small to medium-sized businesses.
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 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.