A.M. Best Withdraws Ratings of Granada Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Besthas downgraded the financial strength rating to B- (Fair) from B (Fair) and the issuer credit rating to “bb-” from “bb” for Granada Insurance Company (Granada) (Miami, FL). The outlook for both ratings remains negative. Concurrently, A.M. Best has withdrawn the ratings in response to the company’s request to no longer participate in A.M. Best’s interactive rating process.

The ratings downgrade reflects Granada’s weakened level of risk-adjusted capitalization, as well as recurring adverse loss reserve development on prior accident years, which has contributed to underwriting and operating losses in four of the past five years. Partially offsetting these negative rating factors are Granada’s long-standing local market presence, experienced management team and highly regarded reinsurance partners, in particular, General Reinsurance Corporation, Swiss Reinsurance America Corporation and Berkley Insurance Company.

The negative outlook reflects A.M. Best’s concern that adverse loss reserve development will continue to impact underwriting results, making it more difficult for the company to return to operating profitability and significantly improve its level of risk-adjusted capitalization in the near term.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:

• Catastrophe Analysis in A.M. Best Ratings
• Equity Credit for Hybrid Securities
• Insurance Holding Company and Debt Ratings
• Risk Management and the Rating Process for Insurance Companies
• Understanding BCAR for Property/Casualty Insurers

This press release relates to rating(s) that have been published on A.M. Best's website.For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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A.M. Best Company

Robert Valenta, 908-439-2200, ext. 5291

Senior Financial Analyst

[email protected]

or

Christopher Sharkey, 908439-2200, ext. 5159

Manager, Public Relations

[email protected]

or

Gerard Altonji, 908-439-2200, ext. 5626

Assistant Vice President

[email protected]

or

Jim Peavy, 908-439-2200, ext. 5644

Assistant Vice President, Public Relations

[email protected]

Source: A.M. Best Company