2008-11-18 00:26:04 -

www.ambest.com - A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit rating of "a" of COPIC Insurance Company (COPIC) (Denver, CO). The outlook for the ratings has been revised to negative from stable.
The affirmation of the ratings is based upon COPIC"s supportive risk-adjusted capitalization and low underwriting leverage. The

company also continues to employ strong risk management programs, which have contributed to COPIC"s consistently favorable underwriting results and strong cash flow. Furthermore, COPIC maintains a leadership position in the Colorado medical professional liability market and benefits from exceptionally high policyholder retention levels. Partially offsetting these positive rating factors are COPIC"s high common stock leverage and its product and geographic concentration risk.
The negative outlook reflects the decline in COPIC"s surplus position in the first nine months of 2008. The drop in surplus was largely attributable to the recent turmoil in the financial markets, which has led to unrealized investment losses. A.M. Best is concerned that if significant losses continue to persist, the company"s risk-adjusted capitalization may decline to a level not supportive of the current ratings.
For Best"s Ratings, an overview of the rating process and rating methodologies, please visit cts.businesswire.com/ct/CT"id=smartlink&url=http%3A%2F%2Fwww ...
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit cts.businesswire.com/ct/CT"id=smartlink&url=http%3A%2F%2Fwww ...


A.M. Best

Analysts

Greg Williams, (908) 439-2200, ext. 5815

mailto:greg.williams@ambest.com

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Henry Witmer, (908) 439-2200, ext. 5097

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Jim Peavy, (908) 439-2200, ext. 5644

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Rachelle Morrow

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