State Capital Assigned ‘R’

Standard & Poor’s Ratings Services assigned its ‘R’ financial strength rating to State Capital Insurance Co. An insurer rated ‘R’ is under regulatory supervision, owing to its financial condition. The action was taken after the North Carolina Insurance Department ordered the company liquidated on the basis of financial insolvency.

State Capital is a domestic property and casualty insurance company based in North Carolina. Licensed in 11 states, it concentrated its writing largely in homeowners and commercial multiple peril insurance. New Jersey and North Carolina were the largest states where the company wrote business. Since 2002, State Capital has not written any new or renewal business. As of December 2003, the company reported negative $219,875 in gross premiums written, $9.1 million in assets, $10.1 million in liabilities.

During the pendency of the regulatory supervision, regulators may have the power to favor one class of obligations or only some obligations. The rating does not apply to insurers subject only to nonfinancial actions such as market conduct violations.

Topics North Carolina