A.M. Best Upgrades Ratings of American Access Casualty Company
OLDWICK, N.J.-(Business Wire)-September 25, 2009 - A.M. Best Co. has upgraded the financial strength rating to B+ (Good) from B (Fair) and issuer credit rating to “bbb-” from “bb+” of American Access Casualty Company (American Access) (Oakbrook Terrace, IL). The outlook for both ratings is stable.
The ratings reflect American Access’ favorable risk-adjusted capitalization, consistent operating earnings and extensive local market knowledge in its core states. The company’s solid capital position is attributed to favorable loss reserve development trends and a conservative investment portfolio. American Access has reported several years of favorable operating results that produced a five-year average operating return, which has outperformed the industry composite. In addition, a steady stream of investment and fee income supplemented the company’s underwriting gains over the past five years.
Partially offsetting these positive rating factors is American Access’ above average net underwriting leverage, driven by the considerable growth in premiums and associated liabilities in most of the past five years. The ratings further reflect American Access’ geographic concentration of risk, principally in two states, limited product offerings with writings consisting entirely of non-standard automobile business, as well as its comparatively high expense structure.
For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.
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