Best Affirms Fireman’s Fund ‘A’ Ratings

A.M. Best has affirmed the financial strength rating (FSR) of ‘A’ (Excellent) and issuer credit ratings (ICR) of “a” of Fireman’s Fund Insurance Companies, which includes Fireman’s Fund Insurance Company, based in Novato, Calif. and its intercompany pool participants and reinsured affiliates. Best also affirmed the ICR of “a” of Allianz of Delaware-based America Inc. The outlook for all of the ratings is stable.

The ratings reflect Fireman’s Fund’s “solid stand-alone capitalization and favorable operating performance over the past five years,” Best explained. “The ratings also consider the group’s strategic importance to the global insurance operations of its German-based ultimate parent, Allianz Societas Europaea (Allianz SE), along with the explicit and implicit support Fireman’s Fund has received in prior years. This commitment remains vital to Fireman’s Fund’s current ratings.”

However, Best indicated that “the group’s poor underwriting and operating performance prior to 2003,” should be considered as partially offsetting factors.

Best said the stable outlook reflects its expectation that Fireman’s Fund will be able to generate strong operating results through solid underwriting performance and steady investment income throughout market cycles.

In October 2009, Best affirmed the FSR of ‘A+’ (Superior) and ICR of “aa” of Fireman’s Fund’s parent company, Allianz Global Risk US Insurance Company (Allianz US), which is based in Burbank.

Best summarized its ratings actions as follows:
The FSR of’ A’ (Excellent) and ICRs of “a” have been affirmed for Fireman’s Fund Insurance Companies and its following intercompany pool participants and reinsured affiliates:
— Fireman’s Fund Insurance Company
— American Automobile Insurance Company
— National Surety Corporation
— The American Insurance Company
— American Standard Lloyd’s Insurance Company
— Associated Indemnity Corporation
— Chicago Insurance Company
— Fireman’s Fund County Mutual Insurance Company
— Fireman’s Fund Indemnity Corporation
— Fireman’s Fund Insurance Company of Hawaii, Inc.
— Fireman’s Fund Insurance Company of Louisiana
— Fireman’s Fund Insurance Company of Ohio
— Interstate Fire & Casualty Company

The ICR of “a” has been affirmed for Allianz of America Inc.

Source: A.M. Best – www.ambest.com