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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 21, 2018 11:04 AM (EST)
AM Best has placed under review with negative implications the Financial Strength Rating 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 Credit Rating (rating) actions follow management’s discussion with AM Best regarding the potential losses related to the Camp and Woolsey wildfires in California in November 2018. Based upon current estimates, gross ultimate losses will far exceed losses previously contemplated in Capital’s ratings.
The under review status reflects the need for AM Best to fully assess the financial and operational impacts of the wildfire activity and Capital’s response to these events. Despite the expected gross and net losses, risk-adjusted capital currently remains supportive of the ratings. AM Best will continue to hold discussions with Capital’s management and monitor the company’s balance sheet strength, 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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