A.M. Best Co. has placed the financial strength rating of B (Fair) of Florida-based Safeway Property Insurance Company under review with negative implications.
This rating action is being taken as a result of the decline in surplus due to the accumulation of losses from hurricanes Charley and Frances.
A.M. Best remains concerned with Safeway Property’s risk-adjusted capitalization, particularly with regard to the elevated probable maximum loss and the ability to absorb a subsequent catastrophic event. Accordingly, continuation of the current rating will be contingent upon additional management actions to improve the company’s capitalization. In the absence of capital improvement, the rating will likely be downgraded.
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