A.M. Best Co. and Nationwide Insurance Company of Florida (NICOF) have reportedly had capital management discussions following hurricanes Charley, Frances, Ivan and Jeanne, which resulted in pre-tax losses, net of recoveries, from the Florida Hurricane Catastrophe Fund (FHCF), which are significant to the capital position of NICOF. During the discussions, management reportedly re-affirmed its commitment to NICOF policyholders.
Although A.M. Best is reportedly encouraged by the potential parental support following these events, the financial strength rating of A- (Excellent) of NICOF remains under review with negative implications as its current risk-adjusted capitalization is not supportive of the existing rating.
NICOF’s ability to maintain its current rating is predicated on the restoration of its capital position, and A.M. Best will continue to maintain capital discussions with NICOF and its parent company, Nationwide Mutual Insurance Company.
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