A.M. Best Affirms Ratings of State Auto Insurance Companies; Affirms Debt Rating of State Auto Financial Corporation.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength ratings (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+ (Superior) 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 "aa-" for State Auto Insurance Companies (State Auto) (Columbus, OH). A.M. Best has also affirmed the debt rating of "a-" on the $100 million 6.25% senior unsecured notes issued by State Auto Financial Corporation (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 : STFC STFC Swindon Town Football Club STFC Self Test Feature Check STFC Shrewsbury Town Football Club STFC Star Trek: First Contact STFC Saskatoon Track and Field Club (Saskatoon, SK, Canada) ) (Columbus, OH) and its ICR of "a-". The outlook for all ratings remains stable. The ratings reflect State Auto's strong capitalization, favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. earnings trend and excellent regional market franchise. These attributes reflect its long-standing market presence, well-established agency relationships, diversified product offerings and adherence to sound underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. fundamentals. Somewhat offsetting these positive rating factors include variability in operating results, which is reflective of weather-related losses as storm loss frequency and severity have trended higher in recent years. In addition, the group has debt servicing requirements due to the above mentioned debt issuance, which could put a strain on future earnings. However, State Auto implemented numerous initiatives to improve earnings that included re-underwriting, pricing adjustments and agency management actions. As a result of these actions, firm market conditions and the recent improvement in loss reserve development related to the Meridian Meridian (mərĭd`ēən), city (1990 pop. 41,036), seat of Lauderdale co., E Miss., near the Ala. line; settled 1831, inc. 1860. business, State Auto has reported favorable operating results during the past three years. The FSRs of A+ (Superior) have been affirmed and ICRs of "aa-" have been assigned with a stable outlook for the following members of State Auto Insurance Companies: --State Auto Florida Insurance Company --Farmers Casualty Insurance Company --Milbank Insurance Company --State Auto Property and Casualty Insurance Company --State Auto Insurance Company of Wisconsin --State Auto National Insurance Company --State Automobile Mutual Insurance Company --State Auto Insurance Company of Ohio --Meridian Citizens Mutual Insurance Company --Meridian Security Insurance Company The following debt rating has been affirmed with a stable outlook: State Auto Financial Corporation-- --"a-" on $100 million 6.25% senior unsecured notes, due 2013 For Best's Debt Ratings, all other Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. 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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