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Insurance ratings actions, July 12


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Insurance ratings actions, July 12

S&P Global Market Intelligencecompiles ratings actions in the insurance space daily through 5:30 p.m. ET. Actionsafter 5:30 p.m. ET will be included in the following day's roundup.

Property and casualty

A.M. Best upgradedthe financial strength rating to A from A- and the issuer credit rating to "a"from "a-" of WestminsterAmerican Insurance Co.

The outlook was revised to stable from positive.

A.M. Best said the upgrade is based on Westminster American'ssolid risk-adjusted capitalization and profitable results, which the rating agencyattributed to management's underwriting expertise within the growing commerciallines book of business.

Fitch Ratings downgradedAllstate Corp.'s short-termissuer default rating to F2 from F1 and affirmed the company's issuer default ratingat A-, with a stable outlook.

Fitch said the downgrade of Allstate's short-term issuer defaultrating reflects an increase in the potential need for holding company liquidity.

Fitch also affirmed, with a stable outlook, the A+ insurer financialstrength ratings of Allstate InsuranceCo. and its P&C affiliates AllstateCounty Mutual Insurance Co., AllstateIndemnity Co., AllstateProperty and Casualty Insurance Co., Allstate Texas Lloyd's, Allstate Vehicle & Property Insurance Co., ,Encompass Independent Insurance Co.,Encompass Insurance Co. of America,Encompass Insurance Co. of Massachusettsand Encompass Property and CasualtyCo.

The rating agency said the affirmations of Allstate Insuranceand its P&C affiliates is based on Allstate's top-tier market position in personallines insurance and solid underwriting results in P&C insurance.

In addition, Fitch revised the outlook to negative from stableand affirmed the A insurer financial strength ratings of Allstate Life Insurance Co. and Allstate Life Insurance Co. of New York.

Fitch said the outlook was revised to negative due to AllstateLife's increasing investment risk and its portfolio being among the riskiest inFitch's rate life universe.

Fitch also affirmed the A insurer financial strength rating ofAmerican Heritage Life Insurance Co.,with a stable outlook.

Fitch Ratings affirmed theissuer default rating of CincinnatiFinancial Corp. at A.

Fitch also affirmed the A+ insurer financial strength ratingsof Cincinnati Financial's three standard market P&C insurance subsidiaries,Cincinnati Insurance Co.,Cincinnati Casualty Co.and Cincinnati Indemnity Co.,and life insurance subsidiary CincinnatiLife Insurance Co.

The outlook on each of the ratings is stable.

Fitch said the affirmation reflects Cincinnati Financial's balancesheet strengths, including conservative operating subsidiary capitalization, sizableholding company cash and a moderate financial leverage ratio.

Fitch Ratings affirmed 's issuer defaultrating at A+.

Fitch also affirmed the AA insurer financial strength ratingsof Progressive's operating subsidiaries MountainLaurel Assurance Co., ProgressiveAdvanced Insurance Co., ProgressiveChoice Insurance Co., ProgressiveDirect Insurance Co., ProgressiveFreedom Insurance Co., ProgressiveGarden State Insurance Co., ProgressiveMarathon Insurance Co., ProgressiveMax Insurance Co., ProgressivePaloverde Insurance Co., ProgressivePremier Insurance Co. of Illinois, Progressive Select Insurance Co., Progressive Universal Insurance Co., , ,Progressive Bayside Insurance Co.,Progressive Casualty Insurance Co.,Progressive Classic Insurance Co.,Progressive Commercial Casualty Co.,Progressive County Mutual InsuranceCo., Progressive GulfInsurance Co., Progressive Hawaii Insurance Co., Progressive Michigan Insurance Co., Progressive Mountain Insurance Co., Progressive Northern Insurance Co., Progressive Northwestern Insurance Co., , ,Progressive Southeastern InsuranceCo., Progressive SpecialtyInsurance Co., ProgressiveWest Insurance Co., Artisanand Truckers Casualty Co., ProgressiveExpress Insurance Co. and UnitedFinancial Casualty Co.

Fitch said the ratings reflect Progressive's excellent operatingperformance, pricing and underwriting expertise, personal auto insurance franchise,conservative investment allocation and very strong risk-based capital position.

Moody's affirmed NorthbridgeGeneral Insurance Corp.'s insurance financial strength rating at A3,with a stable outlook.

Moody's said the rating reflects Northbridge's good market positionin the Canadian P&C insurance sector, its well diversified commercial productportfolio and its relationship with ultimate parent Fairfax Financial Holdings Ltd. The rating agency noted Northbridge'ssignificant exposure to catastrophe losses on a gross underwriting basis, but saidthe net exposure after reinsurance is moderate.