Scpie (NYSE:SKP)
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From Jul 2019 to Jul 2024
A.M. Best Co. has upgraded the financial strength rating (FSR) to
B+ (Very Good) from B (Fair) of SCPIE Indemnity Company, lead
company for the SCPIE Companies, (SCPIE) and its subsidiaries, American
Healthcare Indemnity Company and American Healthcare Specialty
Insurance Company. Concurrently, A.M. Best has upgraded the issuer
credit ratings (ICR) to “bbb-”
from “bb” for the
group and upgraded the ICR to “bb-”
from “b” for
SCPIE Holdings Inc. [NYSE: SKP].
The outlook for the ratings is stable. The operations are headquartered
in Los Angeles, CA.
These rating actions reflect the alleviated concerns related to SCPIE’s
non-core reserves, restored and sustained profitability, its improved
balance sheet and restoration of risk-adjusted capitalization that is
supportive of its secure ratings. These actions follow SCPIE’s
third quarter earnings announcement, which A.M. Best believes further
corroborates the accretive benefits garnered from the realignment of its
operations and business strategy in late 2002. In addition, A.M. Best
views SCPIE’s near-term earnings prospects as
favorable, as the group continues to shed its non-core reserves while
reaping the benefits of improved pricing, lower claim frequency trends
and its return to its core business strategy. SCPIE continues to benefit
from the favorable legislative environment and its market position in
its dominant state of California.
Earnings returned to profitability in 2005 and, in 2006 they are
expected to outpaceprevious year profits. During this most recent
period, management has also been extremely successful in reducing
underwriting and reserve leverage, which has elevated SCPIE’s
capital adequacy to a level that is more reflective of its current
ratings.
These positive attributes are partially offset by the level of operating
losses reported in prior years, continued (albeit lessened) adverse
development on assumed reinsurance reserves and the inherent challenges
of being a leading medical malpractice insurer with regard to price
competition, tort reform, loss cost trends and regulatory challenges.
Despite these attenuating factors, the current ratings and outlook take
into consideration the group’s near-term
earnings prospects in 2007, its pro forma capitalization, as well as
further stabilization in loss reserve development.
The ICR upgrade to “bb-”
from “b” of SCPIE
Holdings Inc. reflects the improvement in the group’s
consolidated operating earnings, the absence of any holding company debt
and the appropriate notching requirements established by A.M. Best.
For Best’s Ratings, an overview of the rating
process and rating methodologies, please visit www.ambest.com/ratings.
For current Best’s Ratings, independent data
and analysis on more than 3,000 individual property/casualty companies
and A.M. Best groups, please visit www.ambest.com/pc.
A.M. Best Co., established in 1899, is the world’s
oldest and most authoritative insurance rating and information source.
For more information, visit A.M. Best’s Web
site at www.ambest.com.
A.M. Best Co. has upgraded the financial strength rating (FSR) to
B+ (Very Good) from B (Fair) of SCPIE Indemnity Company, lead company
for the SCPIE Companies, (SCPIE) and its subsidiaries, American
Healthcare Indemnity Company and American Healthcare Specialty
Insurance Company. Concurrently, A.M. Best has upgraded the issuer
credit ratings (ICR) to "bbb-" from "bb" for the group and upgraded
the ICR to "bb-" from "b" for SCPIE Holdings Inc. (NYSE: SKP). The
outlook for the ratings is stable. The operations are headquartered in
Los Angeles, CA.
These rating actions reflect the alleviated concerns related to
SCPIE's non-core reserves, restored and sustained profitability, its
improved balance sheet and restoration of risk-adjusted capitalization
that is supportive of its secure ratings. These actions follow SCPIE's
third quarter earnings announcement, which A.M. Best believes further
corroborates the accretive benefits garnered from the realignment of
its operations and business strategy in late 2002. In addition, A.M.
Best views SCPIE's near-term earnings prospects as favorable, as the
group continues to shed its non-core reserves while reaping the
benefits of improved pricing, lower claim frequency trends and its
return to its core business strategy. SCPIE continues to benefit from
the favorable legislative environment and its market position in its
dominant state of California.
Earnings returned to profitability in 2005 and, in 2006 they are
expected to outpaceprevious year profits. During this most recent
period, management has also been extremely successful in reducing
underwriting and reserve leverage, which has elevated SCPIE's capital
adequacy to a level that is more reflective of its current ratings.
These positive attributes are partially offset by the level of
operating losses reported in prior years, continued (albeit lessened)
adverse development on assumed reinsurance reserves and the inherent
challenges of being a leading medical malpractice insurer with regard
to price competition, tort reform, loss cost trends and regulatory
challenges. Despite these attenuating factors, the current ratings and
outlook take into consideration the group's near-term earnings
prospects in 2007, its pro forma capitalization, as well as further
stabilization in loss reserve development.
The ICR upgrade to "bb-" from "b" of SCPIE Holdings Inc. reflects
the improvement in the group's consolidated operating earnings, the
absence of any holding company debt and the appropriate notching
requirements established by A.M. Best.
For Best's Ratings, an overview of the rating process and rating
methodologies, please visit www.ambest.com/ratings.
For current Best's Ratings, independent data and analysis on more
than 3,000 individual property/casualty companies and A.M. Best
groups, please visit www.ambest.com/pc.
A.M. Best Co., established in 1899, is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit A.M. Best's Web site at www.ambest.com.