A.M. Best Co. has upgraded the financial strength rating to A (Excellent) from A- (Excellent) and issuer credit rating to “a” from “a-” of Century-National Insurance Co. in North Hollywood, Calif. The outlook for both ratings has been revised to stable from positive.
The rating actions reflect CNIC’s strong capitalization, operating performance and knowledge of the local marketplace, A.M. Best states. Capitalization benefits from CNIC’s reserving practices that have resulted in consistently redundant calendar and accident year loss reserve development.
The company’s underwriting leverage measures have improved due to surplus growth combined with the reduction in premiums written, and CNIC’s favorable operating returns have been driven primarily by underwriting profits coupled with a stream of net investment income, according to A.M. Best.
CNIC offers an array of products, including homeowners, earthquake, commercial auto and collateral protection.