A. M. Best Upgrades RLI's Ratings
NU Online News Service, May 28, 4:16 p.m. EDT?A.M. Best Co. upgraded the rating for Peoria, Ill.-based insurer RLI Corp.'s principal subsidiaries to "A-plus" from "A".[@@]
The Oldwick, N.J.-based rating firm cited a number of factors for the upgrade, including the company's record of continuing "to take advantage of market opportunities as evidenced by its strong growth (via pricing), record earnings, increased business retention and enhanced capitalization."
Best also lauded RLI's "use of technology, aggregate risk management and its comprehensive reinsurance program, which serves to preserve capital."
The upgrade applies to all three RLI insurance subsidiaries: RLI Insurance Company, Mt. Hawley Insurance Company, and RLI Indemnity Company. Best said it also upgraded the debt rating of RLI's existing $100 million 5.95 percent senior unsecured notes, due January 2014, to "a-minus" from "triple-b-plus."
Jonathan Michael, the company's president and chief executive, said Best?s action "validates our long-term commitment to financial strength, a pristine balance sheet, and the stability of our business model."
An upgraded rating, he said, will create new business opportunities across RLI, which, Mr. Michael noted, "will allow us to do more of what we do best: listen to our customers' needs and find the best possible means to meet those needs."
RLI Corp., through its subsidiary insurance companies, underwrites selected property and casualty insurance products. The company reported $71.3 million in net income for 2003, with $525.4 million in sales last year.
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