This Day On The Street
Continue to site
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

A.M. Best Upgrades Issuer Credit Rating Of Contractors Bonding And Insurance Company

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.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.71 -1.20%
FB $116.97 0.21%
GOOG $692.59 0.23%
TSLA $245.67 -0.82%
YHOO $36.41 -0.49%


Chart of I:DJI
DOW 17,711.66 -119.10 -0.67%
S&P 500 2,070.15 -5.66 -0.27%
NASDAQ 4,794.9830 -10.3080 -0.21%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs