A.M. Best Assigns Rating to Infinity Property and Casualty Group.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Feb. 12, 2003 A.M. Best Co. has assigned a financial strength rating of A (Excellent) to Infinity Property and Casualty Group, (Infinity P/C) the core auto subsidiaries of Infinity Property and Casualty Corporation (IPCC See IMS Forum. ) (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 : IPCC) (Birmingham, AL). IPCC was created through a spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. of American Financial Group, Inc.'s (NYSE NYSE See: New York Stock Exchange : AFG AFG Afghanistan (international vehicle registration) AFG American Financial Group AFG Assistance to Firefighters Grant AFG Arbeitsförderungsgesetz (German: Labor Advancement Law) AFG Accreditation for Growth ) (Cincinnati) nonstandard non·stan·dard adj. 1. Varying from or not adhering to the standard: nonstandard lengths of board. 2. automobile business produced through independent agents. The rating outlook is stable. The rating reflects Infinity PC's excellent capitalization, strong nonstandard automobile market presence and the historically favorable overall operating performance of the book. The group's solid capital position is driven by its moderate investment risk profile and commitment to loss reserve adequacy. Historical 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. profitability is attributable to management's product expertise, local market knowledge and utilization of sophisticated technologies within the pricing, risk selection and claims handling processes. Underwriting returns have been aided by the low cost operating structure, which is facilitated by technology and consolidations of select back office functions. Finally, the rating recognizes Infinity P/C's strong nonstandard private passenger automobile market presence as one of the top nonstandard auto insurance groups in the 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. with direct premiums written of approximately $905 million. Somewhat offsetting these positive rating factors are the potential future earnings fluctuations due to localized competitive market conditions and fraud activity prevalent in some key nonstandard automobile markets. The group's premium is focused in three key states, California, Florida and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , which represent approximately 50% of the total book of business. Over recent years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time operating climate in these states has been difficult due to strong competition and increasing claim costs, particularly within New York and Florida's personal injury protection market. However, Infinity P/C has pursued aggressive premium rate increases and tightened underwriting guidelines and will benefit from recent price firming throughout nonstandard auto markets. A.M. Best expects the group's parent, IPCC, to maintain manageable financial leverage and solid fixed coverage ratios as a result of expected favorable earnings and operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. . A.M. Best views the rating outlook as stable due to Infinity P/C's excellent capitalization and solid nonstandard automobile market position. As part of the transaction, Windsor Insurance Company (Indiana) a member of Infinity P/C, acquired Great American Contemporary Insurance Co from Great American Insurance Company (both of Cincinnati) an insurance subsidiary of AFG. In addition, Great Texas County Mutual Insurance Co (Texas) previously affiliated with Great American Insurance Company, became affiliated with Infinity P/C. The financial strength rating of A (Excellent) has been assigned to the following members of the Infinity Property and Casualty Group: -- American Deposit Insurance Company -- American Premier Insurance Company -- Atlanta Casualty Company -- Atlanta Reserve Insurance Company -- Atlanta Specialty Insurance Company -- Coventry Insurance Company -- Infinity Insurance Company -- Infinity National Insurance Company -- Infinity Select Insurance Company -- Leader Insurance Company -- Leader Preferred Insurance Company -- Leader Specialty Insurance Company -- Regal Insurance Company -- TICO Insurance Company -- Windsor Insurance Company -- Great American Contemporary Insurance Co -- Great Texas County Mutual Insurance Co 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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