A.M. Best Upgrades Issuer Credit Rating of PacWest Captive Insurance Company, Inc.

A.M. Best Co. has upgraded the issuer credit rating to "bbb+" from "bbb" and affirmed the financial strength rating of B++ (Good) of PacWest Captive Insurance Company, Inc. (PacWest) (Scottsdale, AZ). The outlook for both ratings has been revised to positive from stable.

These rating actions reflect PacWest's excellent capitalization, strong profitability and the continued financial support it receives in the form of ongoing capital contributions by participating agencies (shareholders) of Leavitt Group. PacWest's favorable operating performance is derived from its strict underwriting guidelines, conservative investment policy and successful business model.

These positive factors are somewhat offset by the company's aggressive growth in both premium volume and associated liabilities in recent years, as well as its business concentration risk, operating as a monoline workers' compensation insurer with the majority of its premium volume coming from the state of California. In an effort to limit its concentration risk, PacWest's management is focused on growing its book of business outside of California in states where Leavitt Group agencies are located.

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The principal methodologies used in determining these ratings, including any additional methodologies and factors that 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.