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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - FEBRUARY 04, 2008 12:00 AM (EST)
A.M. Best Co. has assigned a financial strength rating (FSR) of A (Excellent) and an issuer credit rating of "a" to CompWest Insurance Company (San Francisco, CA). The outlook assigned to these ratings is stable.
A.M. Best also has assigned ICRs of "a" and affirmed the FSR of A (Excellent) of Accident Fund Group (Accident Fund) (Lansing, MI) and its members, which include Accident Fund Insurance Company of America (AFICA) and its subsidiaries, Accident Fund General Insurance Company (Lansing, MI), Accident Fund National Insurance Company (Lansing, MI) and United Wisconsin Insurance Company (New Berlin, WI). The outlook for these ratings is stable. CompWest Insurance Company writes workers' compensation in California and operates through an intercompany reinsurance agreement with AFICA.
The ratings reflect the consolidated group's solid, although variable, earnings performance, achieved as the market leader within the Michigan workers' compensation marketplace, its supportive capital position and initiatives to strategically diversify premium volume into additional states.
Partially offsetting these positive rating factors are the emergence of adverse reserve development in most recent accident years, growth in both premiums and reserves during this time related to diversification initiatives outside of Michigan, the execution risk associated with new states and the time required to determine the true profitability of this business. Despite these concerns, the outlook reflects Accident Fund's solid capitalization and expectations for continued strong operating performance over the near term.
On August 31, 2007, A.M. Best assigned an ICR of "a-" and affirmed the FSR of A- (Excellent) of Blue Cross Blue Shield of Michigan (Detroit, MI), the parent company of Accident Fund. The outlook for both ratings is stable.
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.