A.M. Best Affirms Ratings of Capitol Insurance Group.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) of A (Excellent) and the issuer credit ratings (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "a" of the Capitol Insurance Group (Capitol) (Madison, WI) and its members. The outlook for all ratings is stable. (See below for a detailed listing of the ratings.) These ratings reflect Capitol's strong level of capitalization, solid balance sheet liquidity, conservative operating and underwriting leverage, stabilized operating performance and the benefits derived from being part of Alleghany Corporation (Alleghany) (NYSE NYSE See: New York Stock Exchange : Y). A.M. Best recognizes Capitol's role within Alleghany as evidenced by the implicit and explicit support provided by the ultimate parent, as well as Alleghany's financial flexibility and historical track record of profitably operating well capitalized insurance subsidiaries. Partially offsetting these positive ratings factors are the unprofitable results reported in prior years due to adverse loss reserve development and underwriting losses in the construction contract surety business. Management's various actions to re-focus its strategy since Alleghany's acquisition is evident with Capitol posting profitable underwriting results in recent years. A.M. Best will continue to monitor Capitol's results for further evidence of stabilized loss reserve development trends and sustained operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before through the soft market cycle. Capitol provides commercial multi-peril, commercial property, general liability and workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. through its property/casualty division as well as surety and fidelity products through its surety division. Capitol operates in all 50 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . The FSR of A (Excellent) and the ICRs of "a" have been affirmed for Capitol Insurance Group and its following members: * Capitol Indemnity Corporation * Platte River Platte River River, central Nebraska, U.S. Formed by the confluence of the North Platte and South Platte rivers, it is 310 mi (500 km) long. It flows southeast into a big bend at Kearney, Neb., then empties into the Missouri River at Plattsmouth, south of Omaha. Insurance Company * Capitol Specialty Insurance Corporation For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. 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. For more information, visit www.ambest.com. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion