A.M. Best Co. has placed the A- (Excellent) financial strength rating of Nationwide Insurance Company of Florida (NICOF) under review with negative implications.
This rating action has been taken as a result of anticipated losses associated with Hurricanes Charley, Frances, Ivan and Jeanne and the subsequent reduction of the company’s risk adjusted capitalization.
Although established as a separate legal entity within the Nationwide Group, NICOF’s financial strength rating reflects both the explicit and implicit support of its parent, Nationwide Mutual Insurance Company.
A.M. Best remains concerned with NICOF’s risk-adjusted capitalization and elevated probable maximum loss relative to its surplus. Accordingly, maintaining the current rating level is contingent upon additional financial support from Nationwide Mutual Insurance Company. The rating will remain under review pending further discussions with management and clarification of the parent’s capital strategy regarding Nationwide Mutual Insurance Company of Florida.
Topics AM Best
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