A.M. Best Affirms Credit Ratings of Infinity Insurance Company, Its Insurance Subsidiaries and Affiliates

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” of Infinity Insurance Company, its nine insurance subsidiaries and two affiliates, which are collectively referred to as Infinity. Concurrently, A.M. Best has affirmed the Long-Term ICR of “bbb” and the Long-Term Issue Credit Rating (Long-Term IR) of “bbb” on $275 million 5.00% senior unsecured notes due 2022, issued by Infinity’s parent, Infinity Property & Casualty Corporation (IPCC) [NASDAQ: IPCC]. The outlook of these Credit Ratings (ratings) is stable. The above named companies are headquartered in Birmingham, AL. (See below for a detailed listing of the companies and ratings.)

The affirmation of Infinity’s ratings reflects its solid risk-adjusted capitalization, favorable five-year overall operating performance and strong non-standard automobile market presence. Infinity’s favorable operating earnings are attributed to management’s product line expertise, local market knowledge and utilization of sophisticated technologies within the pricing, risk selection and claims-handling processes. Infinity ranks among the leading non-standard automobile writers in the United States. In addition, Infinity continues to benefit from the financial flexibility provided by IPCC, which maintains moderate financial leverage and solid interest and fixed coverage ratios.

Partially offsetting these positive rating factors is Infinity’s limited business profile, with policies composed predominantly of non-standard auto and approximately 85% of its direct written premiums concentrated in two key states. As a result, the organization’s earnings are susceptible to increased competition in the non-standard auto segment and changes in the regulatory, judicial and legislative environments in its largest states. In addition, dividend distributions over the current five-year period to IPCC have tempered Infinity’s surplus growth.

The FSR of A (Excellent) and the Long-Term ICRs of “a” have been affirmed for Infinity Insurance Company and its following insurance subsidiaries and insurance affiliates:

• Infinity Assurance Insurance Company
• Infinity Auto Insurance Company
• Infinity Casualty Insurance Company
• Infinity Indemnity Insurance Company
• Infinity Preferred Insurance Company
• Infinity Safeguard Insurance Company
• Infinity Security Insurance Company
• Infinity Select Insurance Company
• Infinity Standard Insurance Company
• Hillstar Insurance Company (affiliate)
• Infinity County Mutual Insurance Company (affiliate)

The following Long-Term IR has been affirmed:

Infinity Property & Casualty Corporation—
-- “bbb” on $275 million 5.00% senior unsecured notes, due 2022

The following indicative Long-Term IRs have been affirmed on securities available under the indeterminate principal shelf registration:

Infinity Property & Casualty Corporation—
-- “bbb” on senior unsecured debt
-- “bbb-” on subordinated debt
-- “bb+” on junior subordinated debt
-- “bb+” on preferred stock

This press release relates to Credit Ratings 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 see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.

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

Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.

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A.M. Best

Ricardo Longchallon, +1-908-439-2200, ext. 5676

Senior Financial Analyst

ricardo.longchallon@ambest.com

or

Gary Davis, +1-908-439-2200, ext. 5665

Director

gary.davis@ambest.com

or

Christopher Sharkey, +1-908-439-2200, ext. 5159

Manager, Public Relations

christopher.sharkey@ambest.com

or

Jim Peavy, +1-908-439-2200, ext. 5644

Director, Public Relations

james.peavy@ambest.com

Source: A.M. Best