07/11/2019 | Press release | Distributed by Public on 07/11/2019 09:09
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Press Release - JULY 11, 2019
AM Best Downgrades Credit Ratings of California Insurance Company and Its Affiliates; Places Credit Ratings Under Review
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Manager, Public Relations
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FOR IMMEDIATE RELEASE
OLDWICK - JULY 11, 2019
AM Best has downgraded the Financial Strength Rating to A (Excellent) from A+ (Superior) and the Long-Term Issuer Credit Ratings to 'a+' from 'aa-' of California Insurance Company (Foster City, CA), Continental Indemnity Company (Cedar Rapids, IA), Illinois Insurance Company (Cedar Rapids, IA), Texas Insurance Company (Dallas, TX) and Pennsylvania Insurance Company (Cedar Rapids, IA). In addition, AM Best has placed these Credit Ratings (ratings) under review with negative implications. All companies are collectively referred to as North American Casualty Group (NAC).
The ratings reflect NAC's balance sheet strength, which AM Best categorizes as strongest, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
The ratings have been downgraded as NAC is no longer a strategic investment to its current ultimate parent, Berkshire Hathaway Inc. [NYSE: BRK.A and BRK.B], which is currently negotiating the sale of the company. NAC's ratings will remain under review pending the completion of the transaction, with the negative implications reflecting the execution risk around the deal. AM Best will continue discussions with NAC's management and monitor the company's risk-adjusted capitalization, operating performance and business profile.
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.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry.