A.M. Best Upgrades Ratings of Caring Communities Insurance Company and Assigns Ratings to Caring Communities, a reciprocal Risk Retention Group.

OLDWICK, N.J. -- A.M. Best Co. has upgraded the financial strength rating (FSR) to B++ (Good) from B+ (Good) and issuer credit rating (ICR) to "bbb" from "bbb-" of Caring Communities Insurance Company (CCIC) (George Town, Cayman Islands). The outlook for both ratings has been revised to stable from positive.

Concurrently, A.M. Best has assigned an FSR of B++ (Good) and an ICR of "bbb" to Caring Communities, a reciprocal Risk Retention Group (CCrRRG) (District of Columbia). The outlook assigned to these ratings is stable.

The ratings reflect CCIC and CCrRRG's secure risk-adjusted capitalization, good geographic spread of risk and consistently profitable operating results. Additionally, both companies' significant cash flow from underwriting and operations coupled with a prudently conservative investment portfolio have had a positive influence on their ratings. Selective underwriting, tailored loss control and engineering services designed for facilities caring for seniors, and a claims approach that focuses on the liability risks within the senior care housing and community market place have resulted in 100% policyholder retention since both companies' inception. Furthermore, recent implementation of strong risk management measures have resulted in a decline of loss frequency and loss severity and overall reduction in average loss costs for CCrRRG and CCIC.

Partially offsetting these positive rating factors are CCIC and CCrRRG's with a reinsurance program that historically has resulted in a moderately high reserve leverage associated with long-tail liability lines of business.

CCIC and CCrRRG's primary mission is to provide their owner/policyholders stable coverage, which has generated a net profit for all years of existence. The companies also have recorded combined ratios that outperform their peers by a significant margin. CCIC and CCrRRG's investment portfolios are invested in a diverse mix of assets, which result in conservative portfolios that consistently yield reasonable returns.

A.M. Best remains the leading rating agency of captive insurers rating a wide variety of more than 200 captives in the United States and throughout the world.

For current Best's Ratings and independent data on the captive and alternative insurance market, please visit www.ambest.com/captive.

The principal methodologies used in determining these ratings, including any additional methodologies and factors, which may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.