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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JULY 12, 2013 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and downgraded the issuer credit ratings (ICR) to “a” from “a+” of Seneca Insurance Company Inc. (Seneca) (New York, NY) and its subsidiary, Seneca Specialty Insurance Company (Seneca Specialty) (Arizona). The outlook for all ratings is stable. Both companies are subsidiaries of North River Insurance Company (Morristown, NJ), which is a subsidiary of Crum & Forster Holdings Corp. (Delaware) and ultimately owned by Fairfax Financial Holdings Limited (Fairfax) [TSX: FFH and FFH.U] (Toronto, Canada).
The rating actions for Seneca and Seneca Specialty follow the implementation of a reinsurance agreement with United States Fire Insurance Company (Morristown, NJ), which has an FSR of A (Excellent), an ICR of “a” and a financial size category of XIII.
Although A.M. Best believes Seneca and Seneca Specialty are well positioned at their current rating level, factors that could lead to negative rating actions include operating performance falling short of A.M. Best’s expectation, which was driven by a decline in either underwriting or investment results and/or a decline in risk-adjusted capitalization.
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.
A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source.