CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - AUGUST 21, 2009 09:30 AM (EDT)
A.M. Best Co. has assigned a financial strength rating (FSR) of B++ (Good) and an issuer credit rating (ICR) of "bbb" to Censtat Casualty Company (CCC) (Omaha, NE). The outlook assigned to the FSR is stable, while the outlook assigned to the ICR is positive.
The ratings reflect CCC's excellent risk-adjusted capitalization and implicit support from its parent, Central States Health & Life Co. of Omaha (CSO) (Omaha, NE). These strengths are somewhat offset by CCC's limited product diversification and execution risk associated with implementing a business plan within the current regulatory and legislative environment. This is further compounded by the challenges of operating within the current U.S. economy as product offerings are tied to the availability and use of consumer credit.
Despite these concerns, the outlooks reflect the company's current and projected excellent risk-adjusted capitalization (utilizing company provided projections) and trends in the credit insurance marketplace, which depict enhanced use of contractual liability insurance policies as the lending industry shifts from traditional credit insurance to debt cancellation products.
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.