//BestWire// – AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a-” (Excellent) of California Insurance Company (Foster City, CA) and its affiliates, which are collectively referred to as North American Casualty Group (NAC). Please see below for a detailed listing of the companies and Credit Ratings (ratings).
The ratings reflect NAC’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and marginal enterprise risk management (ERM).
The revised outlooks reflect improved governance at the company. In prior cycles, the group experienced delayed financial audits. Management strengthened the company’s financial reporting team and reconstituted the board of directors to address many of the governance issues. The company’s 2024 audits were completed in advance of their deadline, and the assignment of a more-prominent auditor was communicated to AM Best. While the group’s protracted legal dispute over a conservatorship order is ongoing, the potential adverse financial consequences can be viewed as immaterial at this point in time. AM Best will continue to monitor the situation and respond if necessary.
The FSRs of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) have been affirmed with outlooks revised to stable from negative for the following affiliates of California Insurance Company, which are collectively referred to as NAC:
· Oklahoma Property and Casualty Insurance Company
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 Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
