A.M. Best Affirms Ratings of Ohio Casualty Group and Ohio Casualty Corporation; Changes Rating Outlook to Positive.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and 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-" for Ohio Casualty Group (Group) and its members. Concurrently, A.M. Best has affirmed the "bbb-" ICR and senior debt ratings for Ohio Casualty Corporation (Ohio Casualty) (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : OCAS OCAS abbr. Organization of Central American States OCAS n abbr (= Organization of Central American States) → ODECA f OCAS n abbr (= ) (Fairfield, OH). All rating outlooks have been revised to positive from stable. The ratings reflect the Group's strong overall underwriting results, very strong risk adjusted capitalization and good business position as a regional provider of property/casualty insurance products predominately in the Midwestern and Mid-Atlantic United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The change in outlook recognizes the Group's improved underwriting results attributed to re-underwriting initiatives that include the non-renewal of unprofitable accounts, enhanced technological systems and rate increases implemented on a compounded basis. The Group also benefits from the improved financial flexibility of its parent, Ohio Casualty. Ohio Casualty maintains moderate debt to capital levels of less than 15%, strong interest coverage measures and cash resources to further strengthen the consolidated entities liquidity. Somewhat offsetting these strengths are the Group's underperforming commercial lines business driven largely by adverse development related to 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. and construction defect claims. Additionally, A.M. Best is concerned with the potential impact that softening property/casualty market conditions may have on mid-term operating results. In previous soft market cycles, the Group experienced poor operating results primarily due to inadequate premium rates driven by competitive market conditions. However, current management has achieved progress in addressing underwriting, pricing and actuarial ac·tu·ar·y n. pl. ac·tu·ar·ies A statistician who computes insurance risks and premiums. [Latin controls while improving the Group's risk profile. The financial strength rating of A- (Excellent) and the ICRs of "a-" have been affirmed for Ohio Casualty Group and its following members: --Ohio Casualty Insurance Company --American Fire and Casualty --Avomark Insurance Company --Ohio Security Insurance Company --West American Insurance Company The issuer credit rating of "bbb-" has been affirmed for Ohio Casualty Corporation. The following debt rating has been affirmed: Ohio Casualty Corporation-- --"bbb-" on $200 million 7.3% senior unsecured notes, due 2014 The following indicative debt ratings on securities available under shelf registration have been affirmed: Ohio Casualty Corporation-- -- "bbb-" on senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. -- "bb+" on subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". -- "bb" on preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. Ohio Casualty Trust I-- -- "bb" on preferred securities Ohio Casualty Trust II-- -- "bb" on preferred securities A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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