Standard & Poor’s has joined A.M. Best (see IJ Website Nov. 20) in lowering its ratings on New Jersey-based Highlands Insurance Co. Inc. and its affiliated companies, reflecting its “concern about the companies’ capital position and adequacy of loss reserves.”
Outstanding ratings were lowered from double-‘Bpi’ to triple-‘Cpi’ on Highlands and the following affiliates: Highlands Underwriters Ins. Co; Highlands Casualty Co.; Aberdeen Ins. Co.; Highlands Lloyds; Northwestern National Casualty Ins. Co.; Pacific National Ins. Co., and Pacific Automobile Ins. Co.
S&P observed that the group’s 65 million loss for the first nine months of the year was primarily due to “adverse reserve development of $52.8 million,” which had “eroded the consolidated capital adequacy ratio, based on Standard & Poor’s capital adequacy model, to less than 50% on a pro forma basis, which is considered extremely weak.”|”snp, lowers, highlands, ratings, ‘cccpi’
Was this article valuable?
Here are more articles you may enjoy.
EPA to Rollback Limits on ‘Forever Chemicals’ in Drinking Water 
State Farm VP Apologizes to Homeowner While Allstate Gets Grilled at Senate Hearing 
Hack of Contractor Was at Root of Massive Federal Data Breach 
Ice Cream Sandwich Maker Blames Agent for Lack of Recall Insurance After $4.5M Loss 
