Annual rating activity, U.S. property/casualty industry--2003-2004.

Annual Rating Activity, U.S.
Property/Casualty Industry--2003-2004

On a rated-entity basis.

                                            2003            2004

                         Rating
Category                 Level            #       %       #       %

                                   Secure

Superior                 A++             19     1.8      21     2.0
                         A+              72     6.8      71     6.6
Sub-Total                                91     8.6      92     8.6

Excellent                A              233    22.0     226    21.2
                         A-             290    27.4     310    29.0
Sub-Total                               523    49.4     536    50.2

Very Good                B++            148    14.0     150    14.0
                         B+, FPR 6,     122    11.5     126    11.8
                         FPR 5

Sub-Total                               270    25.5     276    25.8

  Secure Ratings                        884    83.6     904    84.6

                                   Vulnerable

Fair                     B, B-           88     8.3      97     9.1
Marginal                 C++, C+         26     2.5      22     2.1
Weak                     C, C-           10     0.9       6     0.6
Poor                     D                3     0.3       2     0.2
State Supervision/
  Liquidation            E/F             47     4.4      37     3.5

  Vulnerable Ratings                    174    16.4     164    15.4
  Total Letter Ratings                1,058   100.0   1,068   100.0

Source: A.M. Best Co.