Best’s News & Research Service - May 30, 2008 03:58 PM (EDT)
A.M. Best Upgrades Ratings of Safe Insurance Company
OLDWICK, N.J. //BestWire// - A.M. Best Co. has upgraded the financial strength rating (FSR) to A- (Excellent) from B++ (Good) and issuer credit rating (ICR) to “a-” from “bbb” of Safe Insurance Company (Safe) (Huntington, WV). The outlook for both ratings is stable.
The ratings reflect Safe’s strong risk-adjusted capitalization and favorable operating results over the long term. These results are due to Safe’s solid underwriting performance and favorable investment income. The ratings further recognize management’s niche market expertise and conservative operating strategy.
Partially offsetting these positive rating factors is Safe’s elevated expense structure and geographic concentration. As a predominant property writer with a single state concentration, earnings are exposed to localized and severe weather-related events, as well as regulatory and competitive market pressures. However, management’s product offering and reinsurance program have tempered these risks.
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