A.M. Best Co. has removed the financial strength rating of B (Fair) of Nationwide Insurance Company of Florida (NICOF) from under review. The rating outlook is negative.
Removal of the under review status follows the recapitalization of the company by its parent, Nationwide Mutual Insurance Company (NMIC) (Columbus, Ohio). The capital contribution increased the company’s risk adjusted capital to a level that supports the current rating. In addition, the rating recognizes the continued explicit financial support provided by, NMIC. The negative outlook is based on the company’s on-going exposure to significant hurricane events, such as those that occurred in 2005, and the potential impact on future capitalization.
NICOF was established as a Florida-only personal lines writer within the Nationwide Group. A.M. Best will continue to monitor NICOF’s risk-adjusted capitalization, with the expectation that the parent company will remain committed to serving the Florida market.
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