Atlantic Casualty A

Jonathan Rest

NORTH CAROLINA’S Atlantic Casualty Insurance Co has been handed a boost after AM Best revised the outlook on its A- financial strength rating to positive from stable. The rating agendy said the change reflected the improvement in Atlantic Casualty’s risk- adjusted capitalisation through year-end 2009 and its continued solid operating earnings, despite the negative effects of ongoing competitive and recessionary pressures and expectations results will continue to trend favourably. AM Best said the A- rating reflects Atlantic Casualty’s strong risk-adjusted capitalisation, solid operating performance, the improvements to its underwriting leverage and its improved liquidity. Offsetting factors are primarily the negative impact of adverse prior accident year loss reserve development on underwriting results, in addition to continued competitive market conditions and the impact of macro­economic conditions on exposure levels.