AM Best Revises Outlooks to Stable for Members of North American Casualty Group
AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings of “aa-” of California Insurance Company (Foster City, CA), Continental Indemnity Company (Cedar Rapids, IA), Illinois Insurance Company (Cedar Rapids, IA), Texas Insurance Company (Dallas, TX) and Pennsylvania Insurance Company (Cedar Rapids, IA). All companies are collectively referred to as North American Casualty Group (NAC).
The Credit Ratings (ratings) reflect NAC’s excellent level of risk-adjusted capitalization, favorable operating performance since its inception and experienced management team. The ratings also acknowledge management’s prudent operating philosophy, adherence to adequate pricing and reserving discipline. The ratings also consider the historical performance of business produced by its parent company, Applied Underwriters, Inc. (AU), a leading provider of workers’ compensation insurance. AM Best anticipates that AU will continue to support NAC, allowing the group to maintain a level of risk-adjusted capitalization that remains supportive of the ratings. The ratings also recognize the additional financial flexibility and support provided by its publicly traded ultimate parent, Berkshire Hathaway Inc. [NYSE: BRK.A and BRK.B].