A.M. Best on April 14 affirmed the financial strength ratingof A- (Excellent) and the issuer credit rating of "a-" of
The outlook for each rating is stable.
The ratings reflect the insurer's history of profitable overalloperating performance, solid risk-adjusted capitalization and the support it receivesfrom its ultimate parent, ANSA McALLtd., the rating agency said.
"The insurer has consistently produced favorable underwritingresults, which have been complemented by a stable level of investment income,"A.M. Best said. "Profitable overall earnings and relatively modest dividendrequirements have contributed to surplus growth and maintaining a strong level ofrisk-adjusted capitalization."
However, the rating agency noted that these positive ratingsfactors are partially offset by the geographic concentration of the insurer's operations,its continuing challenge to maintain overall earnings and market share in extremelycompetitive markets and the inherent exposure to potential impact from exposureto catastrophic events.