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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - SEPTEMBER 15, 2010 12:00 AM (EDT)
A.M. Best Co. has upgraded the issuer credit rating (ICR) to "bbb+" from "bbb" and affirmed the financial strength rating (FSR) of B++ (Good) of Censtat Casualty Company (CCC). The outlook for the ICR has been revised to stable from positive, and the outlook for the FSR is stable. All companies listed in this press release are domiciled in Omaha, NE.
The upgrading of CCC's ICR reflects the implicit support from its parent, Central States Health & Life Co. of Omaha (CSO), combined with CCC's current and projected excellent level of risk-adjusted capitalization and profitable operations.
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.
The principal methodology used in determining these ratings is Best's Credit Rating Methodology - Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best's rating process and highlights the different rating criteria employed. Additional key criteria utilized include: "Risk Management and the Rating Process for Insurance Companies" and "Understanding BCAR for Property/Casualty Insurers." Methodologies can be found at www.ambest.com/ratings/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.