OLDWICK, N.J. - (Business Wire)
A.M. Best Co. has upgraded the financial strength rating (FSR) to A- (Excellent) from B+ (Good) and issuer credit rating (ICR) to
“a-
” from
“bbb-
” for
Finial Reinsurance Company (Finial) (Stamford, CT). The outlook for both ratings is stable.
The ratings reflect Finial’s strong capitalization, currently solid liquidity measures and favorable 2007 earnings. Additionally, the ratings take into consideration Finial’s ownership by National Indemnity Company (Omaha, NE), which maintains superior financial strength.
Finial has demonstrated orderly run off of its prior year liabilities while maintaining significant cash holdings and fixed income investments of excellent credit quality. The company has generated investment income on its asset base to offset the payout of prior year liabilities.
Somewhat offsetting these strengths are the company’s modest business profile and the potential exposure to adverse loss reserve development from prior accident years. A.M. Best will monitor Finial’s prospective cash flow generation and asset and liability matching while the company continues its run off strategy.
Concurrently, A.M. Best has affirmed the ICR of “bbb-” and debt ratings of “bbb-” on the $200 million 7.125% senior unsecured notes due 2023 of Finial Holdings, Inc. (Delaware). The outlook for both ratings is stable.
For Best’s Debt Ratings, all other Best’s Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.
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.
A.M. Best Co.
Analysts
Devin Inskeep, 908-439-2200, ext. 5449
devin.inskeep@ambest.com
or
Robert DeRose, 908-439-2200, ext. 5453
robert.derose@ambest.com
or
Public Relations
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
rachelle.morrow@ambest.com
