This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

A.M. Best Affirms Ratings Of Standard Casualty Company

Stocks in this article: CVCO

A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer crediting rating “a-” of Standard Casualty Company (Standard Casualty) (New Braunfels, TX). The outlook for all ratings is stable. Standard Casualty is a subsidiary of Cavco Industries Inc. (Delaware Corporation) [NASDAQ: CVCO], a manufacturer of factory-built homes.

The rating actions reflect Standard Casualty’s adequate risk-adjusted capitalization, excellent local market knowledge and generally favorable operating results. Standard Casualty has shown a historical pattern of net earnings driven by its conservative underwriting philosophy and a steady stream of investment income. As a result, the company has reported positive pre-tax operating gains in four of the last five years (2007 – 2011). The exception being 2011, in which the company was adversely impacted by weather-related events and wildfire losses. Furthermore, Standard Casualty’s investment portfolio is fairly conservative and has been the primary driver of pre-tax operating gains. In addition, balance sheet liquidity is excellent and the company has generated positive operating cash flow in most years.

These positive rating factors are partially offset by Standard Casualty’s aggressive growth mainly in Arizona and New Mexico and its recent operating losses driven by frequent and severe weather-related events. As a result, underwriting losses were reported in 2011 and have continued into 2012. A.M. Best anticipates that Standard Casualty may experience underwriting volatility due to its anticipated aggressive growth and inherent exposure to frequent and severe weather-related events. In addition, as a predominate Texas writer, Standard Casualty is exposed to potential judicial, regulatory and economic concerns. However, these risks are partially mitigated as the company historically has adhered to strict underwriting guidelines and a conservative operating philosophy.

In future rating cycles, pressure may be put on Standard Casualty’s ratings and outlook should its growth strategy result in operating losses and loss of surplus, which may lead to weaker risk-adjusted capitalization.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs