The current market leaders could run into some challengers.
Business Editors/Insurance Writers
OLDWICK, N.J.--(BUSINESS WIRE)--August 1, 2008--A.M. Best Co. has assigned a financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of “a-” to ASI Preferred Insurance Corporation (ASI Preferred) (St. Petersburg, FL), following the inclusion of the company in the American Strategic Insurance Group (ASI Group). The outlook for the ratings is stable.
The rating actions reflect ASI Preferred’s favorable risk-adjusted capitalization and moderate premium leverage measures. In addition, the ratings contemplate ASI Group’s experienced management team with a track record of success in the Florida marketplace, as demonstrated in its profitable operating performance. It is A.M. Best’s expectation that ASI Preferred will maintain solid risk-adjusted capital, moderate operating leverage measures and profitable performance, consistent with ASI Group, which employs prudent underwriting standards, innovative pricing systems and effective reinsurance programs.
These positive rating factors are somewhat offset by ASI Preferred’s geographic concentration of risk in Florida, with subsequent exposure to weather-related events and significant dependence on reinsurance, as well as its narrowly focused product base.
For Best’s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.
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.