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FOR IMMEDIATE RELEASE
OLDWICK - JULY 07, 2016 12:21 PM (EDT)
A.M. Best has affirmed the financial strength rating (FSR) of B (Fair) and the issuer credit rating (ICR) of “bb+” of Century Casualty Company (Century Casualty) (Alpharetta, GA). The outlook for the FSR remains stable, while the outlook for the ICR remains negative. Concurrently, A.M. Best has withdrawn the ratings as the company has requested to no longer participate in A.M. Best’s interactive rating process.
The ratings reflect deterioration of Century Casualty’s underwriting results, with underwriting and operating losses reported in 2013 through 2015. The weakness in underwriting performance has primarily stemmed from hotel/motel and convenience store accounts written in 2013 and 2014, as well as management’s decision to strengthen case reserves on several accounts within the discontinued 40% quota share with Occidental Fire & Casualty Company of North Carolina (Occidental). Century Casualty currently participates in a 15% quota share with Occidental, effective Sept. 1, 2014. As a result of the operating losses, Century Casualty’s policyholders’ surplus has declined in recent years. Still, Century Casualty maintains adequate risk-adjusted capitalization driven by low underwriting leverage and a conservative investment portfolio.
The negative outlook for the ICR reflects A.M. Best’s expectation of moderate underwriting losses in the near term and challenges the company faces to improve underwriting results.
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 see A.M. Best’s Recent Rating Activity web page.
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