Minneapolis-based reported that A.M. Best Co. increased the financial strength rating of its subsidiary American Compensation Insurance Co. (ACIC) to “B+” (very good, secure) from B (fair, vulnerable).
Best cited improved capitalization and continued profitable operating performance as the primary factors contributing to the increase. The company increased the capital and surplus to $33 million in 2003 from $26.8 million in 2002 as a result of profitability in 2003.
According to Best, “The rating reflects ACIC’s improved capitalization and profitability over the last two years. After returning an experienced executive management team in December 2001, the company has closed unprofitable regions, reduced premiums in force, improved pricing and refocused on its specific underwriting niche and intense claims and case management.”
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