AM Best Information Services




MAY 10, 2013 12:00 AM (EDT)

A.M. Best Revises Outlook to Stable for Benchmark Insurance Company


CONTACTS:
 
Scott Dodd
Financial Analyst
(908) 439-2200, ext. 5582
scott.dodd@ambest.com

Gerard Altonji
Assistant Vice President
(908) 439-2200, ext. 5626
gerard.altonji@ambest.com

Rachelle Morrow
Senior Manager, Public Relations
(908) 439-2200, ext. 5378
rachelle.morrow@ambest.com

Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK, N.J. - MAY 10, 2013 12:00 AM (EDT)
A.M. Best Co. has revised the outlook to stable from negative and affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of Benchmark Insurance Company (BIC) (Lenexa, KS).

The outlook reflects the company's improved risk-adjusted capitalization, improving dependence on reinsurance and the significant improvement in rate adequacy, particularly on its workers' compensation business.

The ratings reflect BIC's strong risk-adjusted capitalization, solid results in its continuing operations and favorable liquidity position. Offsetting these positive factors are continuing, albeit improving, soft market conditions that have presented challenges to the company in growing its specialty program business, adverse loss reserve development and strengthening of reserves for prior years' losses in 2010, and elevated credit risk on the company's reinsurance recoverables.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

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AMB# Company Name
011205 Benchmark Insurance Company