SAFECO Placed on Watch Negative
Following SAFECO Corp.'s recent announcement indicating the recording of an operating loss for the fourth quarter 2000, all ratings of that company and its subsidiaries were placed on Watch Negative by Fitch. Property/casualty companies affected by the rating action are: SAFECO Insurance Co. of America; General Insurance Co. of America; First National Insurance Co. of America; SAFECO Surplus Lines Co.; SAFECO National Insurance Co.; SAFECO Insurance Co. of Illinois; American States Insurance Co. of Texas; American States Lloyd's Insurance Co.; SAFECO Lloyd's Insurance Co.; SAFECO Insurance Co. of Philadelphia; American States Preferred Insurance Co.; and American Economy Insurance Co.
Travelers Lloyd's Affirmed
The "AApi" rating on Traveler's Lloyd's Insurance Co. was affirmed by Standard & Poor's (S&P). The Hartford, Conn.-based, Texas-domiciled company writes mainly commercial lines. The company is a 100 percent reinsured subsidiary of Travelers Indemnity Co. of America, which is in turn a wholly owned subsidiary of Citigroup Inc.
Markel on CreditWatch Negative
The ratings on Markel Corp. and related entities were placed on CreditWatch with negative implications by S&P, which cited concerns about prospective earnings, capitalization and leverage at the holding company, Markel Corp., as key factors in the rating action. S&P added that its concerns have been driven primarily by the operations of Markel International, which continued to fall below S&P expectations. However, continuing strong performance at Markel North America partially offset those concerns.
Northwestern Nat'l. Casualty Affirmed
The "BBBpi" financial strength rating (FSR) on Northwestern National Casualty Co. (NNCC) was affirmed by S&P. The company primarily underwrites automobile damage and liability coverage for the commercial auto and private markets, and is ultimately controlled and owned by Highlands Insurance Group Inc. Concurrently, based on the absence of relevant historical data, FSRs were withdrawn on the following three affiliates: American Professionals Insurance Co., State Capital Insurance Co. and Statesman Insurance Co. NN Insurance Co. remains a non-rated NNCC affiliate.
W.R. Berkley's 'A+' Affirmed
S&P affirmed the "A+" counterparty credit rating and FSR on W. R. Berkley Corp.'s (WRB) specialty operations. Companies affected by the action are Carolina Casualty Insurance Co., Admiral Insurance Co., Admiral Indemnity Co., Nautilus Insurance Co. and Great Divide Insurance Co. Considered strategically important to WRB, the specialty group accounted for approximately 20 percent of WRB's GAAP earnings prior to 1999 and is considered a strong source of earnings growth and dividend capacity for WRB. The outlook is negative.
American Independent Under Review
The "C++" rating of American Independent Insurance Co. was placed under review with developing implications by A.M. Best. On Jan. 3, 2001, Arch Capital Group Ltd. announced that it had entered into an agreement to acquire all common stock of American Independent. As a result, the rating will stay under review until the expected close of the transaction, expected sometime in the first quarter of 2001, when discussions can be undertaken with management regarding the future strategies and plans for the company.
S&P Affirms Amica
The "AA+" counterparty credit rating and FSR on Amica Mutual Insurance Co. was affirmed by S&P. The rating action is also applicable to the company's subsidiaries Amica Lloyds of Texas and Amica Life Insurance Co. The outlook is stable.
Royal & Sun 'AA-' Affirmed
The long- and short-term ratings, including the "AA-" counterparty credit rating and insurer FSR, on the core operating entities of the Royal & Sun Alliance Group PLC were affirmed by S&P. The rating action came after a Jan. 18 announcement of increased storm losses and reflects the group's excellent global market position in general insurance and robust capitalization. The outlook is negative.
Winterthur Reclassified
The counterparty credit rating and insurer FSR on Wintherthur International Reinsurance Co. Ltd. was downgraded from "AA" to "AA-" by S&P. Concurrently, those ratings were placed on CreditWatch with developing implications along with the "AA-" long-term insurer FSR; "AA-" and counterparty credit rating; and the "A-1+" short term counterparty credit ratings on Winterthur International Insurance Co. Ltd., reflecting a strategic review with respect to those commercial lines businesses currently being undertaken by the Winterthur Group.
RenaissanceRe Upgraded
The FSR of Renaissance Reinsurance Ltd., Hamilton, Bermuda, was upgraded from "A" to "A+" by A.M. Best. The rating action also applies to the company's substantially reinsured subsidiary, Renaissance Reinsurance of Europe. The "A-" FSR on Glencoe Insurance Ltd. and the "B+" FSR of Nobel Insurance Company, both subsidiaries of RenaissanceRe Holdings Ltd., were affirmed. In addition, the existing trust preferred securities issued by RenaissanceRe Capital Trust were assigned a rating of "bbb+."
Reliance Downgraded
The FSR of Reliance Insurance Co. Pennsylvania and its property/casualty subsidiaries was downgraded from "D" to "E" by A.M. Best. The rating action followed an announcement that the company had been placed under regulatory supervision by the Pennsylvania Department of Insurance. The rating action applies to 14 subsidiaries of Reliance.
