CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - AUGUST 15, 2007 12:00 AM (EDT)
A.M. Best Co. has upgraded the financial strength rating (FSR) to B++ (Good) from B+ (Good) and has assigned issuer credit ratings (ICR) of "bbb" to Prime Insurance Group (Prime) (Chicago, IL) and its members. The outlook for all ratings is stable. (See below for a detailed listing of the companies and ratings.)
These rating actions reflect Prime's strengthened risk-adjusted capitalization and improved operating performance. The rating upgrade also recognizes the corrective actions taken by management to reduce property exposures and withdraw from unprofitable lines of business.
These positive rating factors are offset by Prime's historical volatility over the past five years, which includes the effects from Hurricane Katrina, a softening pricing cycle and additional competition from the admitted markets. Additionally, Prime has been addressing some earlier loss reserve development and the ongoing longer-term challenges of competitive pressures and cycle management.
Prime is focused on the excess and surplus lines market. Key classes of business include amusement and recreation, automobile repair, garage services, parking facilities, repossession and recovers, bars, taverns, restaurants, night clubs, health care facilities, contractors, special events, equestrian, aviation and professional liability.
The FSR of B+ (Good) has been upgraded to B++ (Good) and the ICRs of "bbb" have been assigned to Prime Insurance Group and its following members:
- Prime Insurance Company
- Prime Insurance Syndicate Inc.
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 full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors.