AM Best


A.M. Best Assigns Ratings to Frank Winston Crum Insurance, Inc.


CONTACTS:

Analyst(s)

Edward Keane

(908) 439-2200, ext. 5291

edward.keane@ambest.com



Michelle Baurkot

(908) 439-2200, ext. 5507

michelle.baurkot@ambest.com

Public Relations

Rachelle Morrow

(908) 439-2200, ext. 5378

rachelle.morrow@ambest.com

Jim Peavy

(908) 439-2200, ext. 5644

james.peavy@ambest.com


FOR IMMEDIATE RELEASE

OLDWICK, N.J. - APRIL 15, 2010 02:00 PM (EDT)
A.M. Best Co. has assigned a financial strength rating of B+ (Good) and an issuer credit rating of "bbb-" to Frank Winston Crum Insurance, Inc. (FWCI) (Clearwater, FL). The outlook assigned to both ratings is stable.

The ratings reflect FWCI's supportive level of risk-adjusted capitalization, targeted earnings and capital accumulation projections set forth by management and the expected financial support provided in the form of capital contributions from the Crum family.

These positive factors are somewhat offset by the company's business concentration risks, operating as a monoline workers' compensation insurer for an affiliated professional employer organization (PEO), with the majority of its premium volume coming from Florida. In addition, FWCI lacks long-term operating results to demonstrate stability within its market segment over a longer period of market cycles. As a result of its geographic concentration risk, FWCI's operations are highly exposed to additional competitive pressures and business environment issues, such as state reforms and regulatory and legislative changes. In an effort to limit its concentration risk, management is focused on growing FWCI's book of business in states where the FrankCrum PEO companies operate.

A.M. Best will continue to monitor FWCI's progress in achieving its business plan to ensure that premium growth and accumulation of loss reserves do not strain its risk-adjusted capitalization and that overall operating results are achieved in accordance with rating expectations.

For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit Best's Ratings & Analysis.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at Best's Credit Rating Methodology.

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.

Related Companies

For information about each company, including the Best's Credit Reports, group members (where applicable) and news stories, click on the company name. An additional purchase may be required.

AMB# Company Name
012601 Frank Winston Crum Insurance Company