A.M. Best Affirms Rating of The Republic Group Companies

Thu Dec 16, 2010 8:23pm EST

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A.M. Best Affirms Rating of The Republic Group Companies

PR Newswire

DALLAS, Dec. 16, 2010 /PRNewswire/ -- The Republic Group (Republic) today announced A.M. Best Company has affirmed the rating of A- (Excellent) for each of the group's companies. In addition to affirming the group's current financial strength, A.M. Best assessed its outlook as "stable".

(Logo:  http://photos.prnewswire.com/prnh/20050801/REPUBLICLOGO)

The rating and outlook reflect the group's solid capitalization, adequate operating profitability, longstanding regional market presence, conservative investment portfolio and the financial flexibility offered by its global parent. The group's risk-adjusted capitalization is favorable due to management's re-focusing of its operating strategy as a regional writer targeting niche opportunities through its network of long-standing agents and managing general agent partners. In addition, the group's investments have been realigned in recent years to a conservative, predominantly fixed income security portfolio, which has contributed positively to the increased surplus position. The result has translated into strong surplus appreciation over the past five years.

A.M. Best noted that the group's conservative reinsurance program, disciplined underwriting, diversified product offering and expanding footprint help mitigate its exposure to weather–related events and regional concentration of risk. Additionally, A.M. Best noted that the group's elevated underwriting expenses have helped the group's underlying book of business generate favorable results as reflected in its five year average pure loss ratio, which is significantly lower than the personal lines industry composite.

"We are pleased that A.M. Best has again re-affirmed its A-(Excellent) rating for our companies," said Parker W. Rush, Republic's President and Chief Executive Officer.  "We believe challenging economic environments favor companies like Republic that are built on a stable foundation of loyal agents and MGA partners, dedicated underwriters and claims staff, operational segment balance and conservative financial position."

About Republic

Republic Companies, Inc. provides personal and commercial property and casualty insurance products through a group of insurance companies and related entities designated in the industry as "The Republic Group". In its Independent Agents segments, Republic distributes these products to individuals and small to medium-size businesses through a network of independent agents primarily in Texas, Louisiana, Oklahoma, New Mexico, Mississippi and Arkansas. In its Program Management and Insurance Services segments, Republic capitalizes on its unique combination of charters and licenses to develop and manage target-niche insurance products that are distributed through managing general agents and other producers in many additional states. Republic Companies, Inc. is indirectly owned by Delek Investments and Properties Ltd., a majority-owned subsidiary of Delek Group Ltd. Visit www.RepublicGroup.com for more information.

SOURCE The Republic Group

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