A.M. Best Downgrades Ratings of Interstate Bankers Casualty Company

OLDWICK, N.J.--()--A.M. Best has downgraded the financial strength rating to E (Regulatory Supervision) from C- (Weak) and the issuer credit rating to “rs” from “cc” of Interstate Bankers Casualty Company (Interstate Bankers) (Chicago, IL).

The rating actions reflect Interstate Bankers being placed under regulatory supervision by the State of Illinois due to a Finding of Insolvency. The Agreed Order of Rehabilitation was signed and executed on May 1, 2014. The deterioration in Interstate Bankers’ operating results was driven by adverse loss reserve development on its non-standard automobile book of business, which resulted in a sharp decline in policyholders’ surplus and a significant decrease in risk-adjusted capitalization.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contacts

A.M. Best Company, Inc.
Kenneth Tappen, 908-439-2200, ext. 5248
Senior Financial Analyst
kenneth.tappen@ambest.com
or
Joseph Burtone, 908-439-2200, ext. 5125
Assistant Vice President
joseph.burtone@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

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Contacts

A.M. Best Company, Inc.
Kenneth Tappen, 908-439-2200, ext. 5248
Senior Financial Analyst
kenneth.tappen@ambest.com
or
Joseph Burtone, 908-439-2200, ext. 5125
Assistant Vice President
joseph.burtone@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com