A.M. Best has upgraded the issuer credit rating (ICR) to “aa” from “aa-” and affirmed the financial strength rating (FSR) of A+ (Superior) of Contractors Bonding and Insurance Company (CBIC) (Seattle, WA), a member of the RLI Group (RLI).
In addition, A.M. Best has affirmed the FSR of A+ (Superior) and the ICRs of “aa” of the remaining members of RLI. A.M. Best also has affirmed the ICR of “a” and debt rating of “a” on $150 million 4.875% senior unsecured notes due 2023 of RLI's publicly traded parent holding company, RLI Corp. [NYSE: RLI]. The outlook for all ratings is stable. All companies are domiciled in Peoria, IL, unless otherwise specified. (See below for a detailed listing of the companies and ratings.)
The upgrading of the ICR of CBIC reflects the strategic importance the company provides to RLI by offering another admitted product platform for rate flexibility and product diversification as well as through the expansion of RLI’s geographic footprint in the northwest/western portion of the United States, which provides access to a new network of producers. The integration of the management and technology platforms has essentially been completed and products can now be cross-sold within RLI. The ratings also acknowledge CBIC’s strong stand-alone risk-adjusted capitalization and historically profitable operating and underwriting results. A.M. Best expects that CBIC will remain essential to RLI’s core operations and provide implicit and/or explicit support in the future should it be warranted.
The rating affirmations take into consideration RLI Corp.’s solid 2013 financial results and favorable first quarter 2014 earnings announcement. The ratings also reflect RLI's superior capitalization, sustained long-term operating profitability and excellent business profile as one of the leading specialty property/casualty insurance organizations in the United States. RLI has been able to maintain its focus in disciplined niche underwriting by concentrating on markets that are often underserved, which help to somewhat insulate it from the various stages of the traditional property/casualty market cycle. The ratings acknowledge the strong financial flexibility afforded by RLI Corp., as evidenced by its modest financial leverage and strong fixed charge coverage.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV