• ABOUT US
  • Background
  • Pauseworthy
  • Our People
  • KCSA News
• INVESTOR RELATIONS
  • Background
  • Capabilities
  • IR Websites
  • Case Studies
• PUBLIC RELATIONS
  • Background
  • Capabilities
  • Case Studies
• CREATIVE GROUP
  • Background
  • Capabilities
  • Work
• CONTACT

A.M. Best Revises Outlook to Negative for SeaBright Insurance Company and SeaBright Holdings, Inc

Monday 19 September 2011

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has revised the outlook to negative from stable and affirmed the financial strength rating of A- (Excellent) and issuer credit rating (ICR) of “a-” of SeaBright Insurance Company (SeaBright) (Chicago, IL). Concurrently, A.M. Best has revised the outlook to negative from stable and affirmed the ICR of “bbb-” of the publicly traded holding company of SeaBright, SeaBright Holdings, Inc. (SHI) (Wilmington, DE) (NYSE:SBX - News).

These rating actions reflect the significant downturn in SeaBright’s operating results in 2010 and 2011, which were driven by weakened underwriting performance associated with reserve strengthening actions for accident years 2007 through 2009, primarily related to increasing medical cost trends. Additionally, SeaBright continues to face marketplace challenges associated with its geographic and coverage lines expansion, which is likely to limit any turnaround in the company’s operating performance over the near term.

Despite the revised outlook, the affirmation of the ratings recognize SeaBright’s solid risk-adjusted capitalization, historically profitable operating results and the experienced management team within its niche workers’ compensation market.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; “The Treatment of Terrorism Risk in the Rating Evaluation”; “Understanding Universal BCAR”; and “Natural Catastrophe Stress Test Methodology.” Methodologies can be found at www.ambest.com/ratings/methodology.

Founded in 1899, 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 © 2011 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.