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FOR IMMEDIATE RELEASE
OLDWICK - FEBRUARY 20, 2019 09:49 AM (EST)
AM Best has revised the implications of the under review status to developing from negative for the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” of California Capital Insurance Company and its subsidiaries: Eagle West Insurance Company, Monterey Insurance Company and Nevada Capital Insurance Company (Reno, NV). These companies operate under an intercompany pooling arrangement, collectively referred to as Capital Insurance Group (Capital). All companies are domiciled in Monterey, CA, unless otherwise specified.
The revised implications follow the recent announcement that Capital will be acquired by Auto-Owners Insurance Group. The transaction, subject to customary closing conditions and regulatory approvals, is expected to close by mid-year 2019.
The Credit Ratings (ratings) will remain under review pending the completion of the transaction and AM Best’s discussions with the company’s management. The developing implications are due primarily to the potential of positive rating factors that may result post-acquisition. AM Best will continue to hold discussions with Capital’s management throughout the process and will monitor the group’s risk-adjusted capitalization, operating performance, business profile and enterprise risk management.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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