AM Best


A.M. Best Upgrades Ratings of Safe Insurance Company


CONTACTS:


Analyst(s)

Frederick DeLeon

(908) 439-2200, ext. 5175

frederick.deleon@ambest.com

Gary Davis

(908) 439-2200, ext. 5665

gary.davis@ambest.com

Public Relations

Jim Peavy

(908) 439-2200, ext. 5644

james.peavy@ambest.com

Rachelle Morrow

(908) 439-2200, ext. 5378

rachelle.morrow@ambest.com


FOR IMMEDIATE RELEASE

OLDWICK, N.J. - MAY 30, 2008 12:00 AM (EDT)
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.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.

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.

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AMB# Company Name
011614 Safe Insurance Company