APRIL 29, 2015 01:53 PM (EDT)
A.M. Best Revises Outlook to Negative for Century-National Insurance Company
|Michael T Venezia|
Senior Financial Analyst
(908) 439-2200, ext. 5034
Assistant Vice President
(908) 439-2200, ext. 5665
Manager, Public Relations
(908) 439-2200, ext. 5159
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
FOR IMMEDIATE RELEASE
OLDWICK - APRIL 29, 2015 01:53 PM (EDT)
A.M. Best has revised the outlook to negative from stable and affirmed the financial strength rating of A (Excellent) and the issuer credit rating of "a" of Century-National Insurance Company (CNIC) (North Hollywood, CA).
While CNIC maintains strong risk-adjusted capitalization that comfortably supports its ratings, the revision of the outlook largely reflects a downward trend in underwriting performance, particularly in the company's commercial automobile liability business and to a lesser extent, its personal auto lines of business. In addition, adverse commercial auto loss reserve development from previous years has negatively impacted CNIC's more recent operating results.
The rating affirmation reflects CNIC's strong capital base, its long-standing market presence in California as a writer of homeowners and commercial and personal automobile business and generally favorable investment returns.
The ratings could be negatively impacted if there were a sudden, unexpected and material decline in risk-adjusted capitalization or a sustained deterioration in operating performance. Stabilization of the rating outlook is contingent upon improved underwriting performance trends.
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 .
Key insurance criteria reports utilized:
This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best's Ratings & Criteria Center.
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.