AM Best Comments on Credit Ratings of California Insurance Company Following Regulatory Action Over Re-Domestication and Merger
OLDWICK, N.J.--(BUSINESS WIRE)--Nov 13, 2019--
AM Best has commented that the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of “a” of California Insurance Company (CIC) (Foster City, CA) and its pooled insurance affiliates, collectively referred to as North American Casualty Group (NAC), remain under review with negative implications, despite regulatory action regarding the company. AM Best took action on these Credit Ratings (ratings) on Oct. 31, 2019 (see related press release ).
AM Best has been informed by the California Department of Insurance (CDOI) that CIC continues to operate with approximately $590 million of policyholder surplus, as it has since June 30, 2019. AM Best remains in close dialogue with the company management, as they work to resolve outstanding regulatory issues.
A California judge appointed CDOI as conservator of the company on Nov. 4, 2019 after the state regulator legally challenged the company’s merger and relocation to New Mexico.
It is AM Best’s intent to complete a comprehensive review of the groups’ balance sheet strength, operating performance, business profile, and enterprise risk management over the near term and to resolve the current under review with negative implications status once all regulatory disputes are resolved.
This press release relates to Credit Ratings that have been published on AM 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 AM 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. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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KEYWORD: NEW JERSEY EUROPE UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: INSURANCE PROFESSIONAL SERVICES
SOURCE: AM Best
Copyright Business Wire 2019.
PUB: 11/13/2019 01:10 PM/DISC: 11/13/2019 01:10 PM