A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and has assigned an issuer credit rating (ICR) of “a-” to Century Surety Company (Century Surety) (Westerville, Ohio).
A.M. Best has also assigned an issuer credit rating of “bbb-” to Century Surety’s publicly-traded ultimate parent holding company, ProCentury Corporation (ProCentury) (Del.). All ratings have a stable outlook.
The ratings for Century Surety reflect its enhanced capitalization, improved underwriting profitability and the financial flexibility provided by ProCentury. Century Surety has benefited considerably from the $55.0 million in proceeds contributed to it shortly following ProCentury’s initial public offering in 2004.
These positive factors are offset by the rapid growth reported by Century Surety since 2001, its marginal five-year average operating returns and the myriad challenges associated with the ongoing emergence of construction defect claims and its impact on loss reserve development reported over the years.
ProCentury is a specialty property/casualty insurance holding company. For the period ending March 31, 2005, ProCentury reported total shareholders’ equity of $115.3 million.
Century Surety underwrites property/casualty insurance for small and mid-sized businesses and primarily writes excess and surplus lines insurance, marketing its products through a select network of general agents.
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