AM Best


A.M. Best Assigns Ratings to Companion Specialty Insurance Company


CONTACTS:


Analyst(s)

Brian O'Larte

(908) 439-2200, ext. 5138

brian.olarte@ambest.com

Michelle Baurkot

(908) 439-2200, ext. 5507

michelle.baurkot@ambest.com




Public Relations

Jim Peavy

(908) 439-2200, ext. 5644

james.peavy@ambest.com

Rachelle Morrow

(908) 439-2200, ext. 5378

rachelle.morrow@ambest.com


FOR IMMEDIATE RELEASE

OLDWICK, N.J. - AUGUST 13, 2008 12:00 AM (EDT)
A.M. Best Co. has assigned a financial strength rating (FSR) of A (Excellent) and an issuer credit rating (ICR) of "a" to Companion Specialty Insurance Company (Specialty) (District of Columbia). The outlook for both ratings is stable.

These rating actions follow the recent state approval of a 100% quota share agreement with Specialty and its parent, Companion Property and Casualty Insurance Company (Companion) (Columbia, SC).

In May 2008, A.M. Best upgraded the FSR to A (Excellent) from A- (Excellent) and the ICRs to "a" from "a-" for the Companion Property and Casualty Group and its members.

Those rating actions were based on the group's solid capitalization, improved underwriting and operating performance, more favorable reserve development trends as well as prudently managed geographic and product diversification initiatives through its "fee for service" business. The rating upgrades also recognized the significant financial support and flexibility provided by the group's parent, Blue Cross and Blue Shield of South Carolina, which has contributed substantial amounts of capital in recent years in support of premium growth and expansion initiatives.

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. For more information, visit www.ambest.com.

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