AM Best


A.M. Best Withdraws Ratings of IFA Insurance Company


CONTACTS:

Jacqalene Lentz
Senior Financial Analyst
(908) 439-2200, ext. 5762
jacqalene.lentz@ambest.com

Greg Williams
Assistant Vice President
(908) 439-2200, ext. 5815
greg.willaims@ambest.com

Christopher Sharkey
Manager, Public Relations
(908) 439-2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - MARCH 04, 2015 02:23 PM (EST)
A.M. Best has downgraded the financial strength rating to C+ (Marginal) from C++ (Marginal) and the issuer credit rating to "b-" from "b" of IFA Insurance Company (IFA) (Clark, NJ). The outlook for both ratings is negative. Concurrently, A.M. Best has withdrawn the ratings in response to the company's request to no longer participate in A.M. Best's interactive rating process.

The rating downgrades reflect IFA's net losses and surplus declines through third quarter 2014 and the uncertainty surrounding full year 2014 results. Unprofitable underwriting performance has resulted in the continued deterioration in the company's risk-adjusted capitalization.

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:


  • Catastrophe Analysis in A.M. Best Ratings

  • Risk Management and the Rating Process for Insurance Companies

  • Understanding BCAR for Property/Casualty Insurers

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.


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AMB# Company Name
003542 IFA Insurance Company