Ratings Roundup: Seven Seas, Great Midwest, CompWest

February 7, 2008

A.M. Best Co. has affirmed the financial strength rating of ‘A’ (Excellent) and the issuer credit rating of “a” of Seven Seas Insurance Company, Inc., based in Riviera Beach, Fla., with a stable outlook. “The ratings reflect Seven Seas outstanding profitability, supportive capitalization and management’ s specialty underwriting expertise within the ocean and inland marine cargo market,” said Best. “The ratings also acknowledge the advantages derived from the company’ s affiliation with Nicor, Inc. and the synergies gained from Seven Seas effective low-cost distribution platform and preferential access to its insureds via the customer network of its affiliate, Tropical Shipping.”

A.M. Best Co. commented that the financial strength rating of ‘A’ (Excellent) and the issuer credit rating of “a+” of Great Midwest Insurance Company are “unchanged following the recent announcement that Southwest Insurance Partners Inc. (SWIP) of Houston, a recently formed Texas holding company, has acquired FMG2, the parent company of GMIC, its affiliated underwriting agency, Shel-Ray Underwriters, Inc., and all of its subsidiaries.” Best also noted that GMIC’s management staff “will remain in place, directing the company’ s operations with a continuing focus on conservative expansion through existing producers, while maintaining underwriting discipline and risk profile.”

A.M. Best Co. has assigned a financial strength rating (FSR) of ‘A’ (Excellent) and an issuer credit rating of “a” to San Francisco-based CompWest Insurance Company both with stable outlooks. Best also assigned ICRs of “a” and affirmed the FSR of ‘A’ (Excellent) of Michigan-based Accident Fund Group and its members, which include Accident Fund Insurance Company of America (AFICA) and its subsidiaries, Accident Fund General Insurance Company, Accident Fund National Insurance Company and United Wisconsin Insurance Company. The outlook for these ratings is also stable. Best noted that “CompWest Insurance Company writes workers’ compensation in California and operates through an intercompany reinsurance agreement with AFICA. The ratings reflect the consolidated group’ s solid, although variable, earnings performance, achieved as the market leader within the Michigan workers’ compensation marketplace, its supportive capital position and initiatives to strategically diversify premium volume into additional states.”

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