A.M. Best Places Rating of Allstate Floridian Under Review.OLDWICK, N.J. -- A.M. Best Co. has placed the financial strength rating of A- (Excellent) of Allstate Floridian Group under review with negative implications. All companies listed are affiliates of The Allstate Corporation (NYSE NYSE See: New York Stock Exchange :ALL) and are located in Northbrook, IL. This rating action reflects the potential capital decline associated with losses from Hurricane Charley This article is about the Atlantic hurricane of 2004; for other storms named Hurricane Charley, see Hurricane Charley (disambiguation). Hurricane Charley was the third named storm, the second hurricane, and the second major hurricane of the 2004 Atlantic hurricane season. and subsequently reduced risk-adjusted 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. . The rating action is being taken as a result of insufficient detailed information available to assess the ultimate financial impact of Hurricane Charley on Allstate Floridian as well as the potential impact of Hurricane Frances This article is about the Atlantic hurricane of 2004; for other storms of the same name, see Hurricane Frances (disambiguation) Hurricane Frances was the sixth named storm, the fourth hurricane, and the third major hurricane of the 2004 Atlantic hurricane season. and any subsequent events. Allstate Floridian, comprised of Allstate Floridian Insurance Company and Allstate Floridian Indemnity Company, is the dedicated producer of Florida property business for the Allstate Insurance Group. The Allstate Floridian Group is a separate entity from the Allstate Insurance Group and thus receives a stand-alone rating from A.M. Best. While gross losses associated with Hurricane Charley are significant, participation in the Florida Hurricane Catastrophe Fund has considerably reduced net losses. However, A.M. Best remains concerned with Allstate Floridian's risk-adjusted capitalization, particularly with regard to the elevated probable maximum loss Probable Maximum Loss (PML) The anticipated value of the largest loss that could result from the destruction and the loss of use of property, given the normal functioning of protective features (firewalls, sprinklers, and a responsive fire department, among others, in the and the ability to absorb a subsequent catastrophic event. Accordingly, continuation of the current rating will be contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent additional management actions to improve Allstate Floridian's capitalization. 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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