Safeway Group Members Upgraded

A.M. Best Co. upgraded the financial strength ratings to “A” (excellent) from “A-” (excellent) of Safeway Insurance Co. of Illinois, Alabama, Georgia, Louisiana and Oak Brook County Mutual Ins. Co. of Texas. Best also assigned a financial strength rating of “A” (excellent) to Safeway Direct Insurance Co. of California. All six companies are members of the Safeway Insurance Group, headquartered in Westmont, Ill. Best additionally affirmed the financial strength rating of “B” (fair) of Safeway Property Insurance Co. of Florida. All ratings have a stable outlook.

These ratings reflect Safeway’s excellent capitalization and sustained operating profitability. These positive rating attributes are derived from the group’s underwriting discipline, multiple distribution channels and efforts to refine its infrastructure and operations. Despite catastrophe exposure and rising loss costs, Safeway has produced profitable operating results reflective of favorable loss experience and a competitive expense ratio. In addition, Safeway has benefited from price firming, which has been prevalent in the nonstandard automobile marketplace in recent years. As a result, surplus grew approximately 35 percent over the past two years.