A.M. Best Affirms Ratings of the Donegal Insurance Pool and Peninsula Insurance Group; Assigns Issuer Credit Ratings.OLDWICK, N.J. -- A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the financial strength rating of A (Excellent) and assigned an issuer credit rating (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" to the Donegal Insurance Pool (Pool) (Marietta, PA) and its members. At the same time, A.M. Best has affirmed the financial strength rating of A (Excellent) and assigned an ICR of "a" to the Peninsula Insurance Group (Peninsula) (Salisbury, MD) and its members. An ICR of "bbb" has also been assigned to Donegal Group Inc. (Donegal) (Pennsylvania) (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 : DGICA). All ratings have a stable outlook. The rating of the Pool reflects its excellent capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. , improved operating performance and management's conservative operating philosophy, which is evident in its diversified diversified (di·verˑ·s investment portfolio and prudent catastrophe exposure management program. In addition, the rating recognizes Donegal's disciplined 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. culture, multi-faceted growth strategy that incorporates organic growth as well as growth by acquisitions, and the continuing development and implementation of technological advancements. These positive factors are partially offset by Donegal's geographic concentration in the Mid-Atlantic region. This risk exposes the group's earnings and surplus to volatility associated with significant localized weather patterns, regulatory and judicial changes, as well as market dislocations. Peninsula maintains favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. risk-adjusted capitalization, improved underwriting performance and the financial flexibility derived from its parent, Donegal. Its strengths are supported by long-term independent agency relationships and local market expertise. Furthermore, management has taken positive steps to improve its business profile through increased efficiencies in its underwriting and claim handling functions, as well as Peninsula's planned geographic expansion into Pennsylvania. A.M. Best anticipates continuance The adjournment or postponement of an action pending in a court to a later date of the same or another session of the court, granted by a court in response to a motion made by a party to a lawsuit. of Donegal's favorable operating trends in 2005, barring the occurrence of greater than normal catastrophe losses. The financial strength rating of A (Excellent) has been affirmed, and an ICR of "a" has been assigned to the Donegal Insurance Pool and its following members: --Atlantic States Insurance Company --Donegal Mutual Insurance Company --Southern Insurance Company of Virginia --Le Mars Insurance Company The financial strength rating of A (Excellent) has been affirmed, and an ICR of "a" has been assigned to the Peninsula Insurance Group and its following members: --Peninsula Insurance Company --Peninsula Indemnity Company An ICR of "bbb" has been assigned to Donegal Group Inc. 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 http://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 http://www.ambest.com. |
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