A.M. Best Affirms Ratings of Computer Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit rating of “a” of Computer Insurance Company (Providence, RI). The outlook for both ratings is stable.

The ratings reflect Computer Insurance Company’s outstanding profitability, conservative operating strategy and management’s specialty underwriting expertise within its captive niche market. The rating outlook is based upon the company’s strong operating margins and low underwriting leverage.

The ratings also acknowledge the advantages derived from Computer Insurance Company’s affiliation with its immediate parent, Hewlett-Packard Financial Services (HPFS), and the synergies gained from the company’s effective low-cost distribution platform, as well as preferential access to its insureds via the customer network of its ultimate parent, Hewlett-Packard Company (HP) [NYSE: HPQ].

The principle product offered by Computer Insurance Company provides extended maintenance to HP customers. The hardware policy, branded as Recover-All Service, provides extended coverage protection from a wide range of natural and man-made disasters, accidents and environmental hazards in a data center following a covered loss. Periodically, Computer Insurance Company dividends accumulated earnings to HPFS, most recently $20 million in third quarter 2009.

For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.