2010-03-19 16:17:01 -

A.M. Best Co. has upgraded the issuer credit ratings (ICR) to “bbb+” from “bbb”, revised the outlook to positive from stable and affirmed the financial strength rating (FSR) of B++ (Good) of American Capital Assurance Group (ACA) (St. Petersburg, FL) and its members.

(See below for a detailed listing of the companies.)


The ratings reflect ACA’s profitable underwriting performance in the Florida small commercial and homeowners markets, as well as its solid risk-adjusted capitalization resulting from prudent underwriting, a tempered direct premiums written trend in recent years and a sound overall risk management focus. As a result, surplus growth has occurred in recent years, complemented by support from ACA’s parent company. The positive outlook contemplates that operating performance and risk-adjusted

capitalization will continue to trend favorably in the near and long term.

These positive rating factors are somewhat offset by ACA’s limited product offerings and current geographic concentration of risk in Florida, with subsequent exposure to weather-related events and significant dependence on reinsurance. In order to mitigate this concern, the group continues to maintain conservative catastrophe reinsurance coverage.

The ICRs have been upgraded to “bbb+” from “bbb” and the FSR of B++ (Good) has been affirmed for American Capital Assurance Group and its following members.

- American Capital Assurance Corporation
- ACA Home Insurance Corp.


For Best’s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings : .

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology : .



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 www.ambest.com : .



A.M. BestAnalysts:Raymond Thomson,

908-439-2200, ext. 5621 raymond.thomson@ambest.com : mailto:raymond.thomson@ambest.com Jeffrey
Mango, CPA, 908-439-2200, ext. 5204 jeffrey.mango@ambest.com : mailto:jeffrey.mango@ambest.com orPublic
Relations:Rachelle Morrow, 908-439-2200, ext. 5378 rachelle.morrow@ambest.com : mailto:rachelle.morrow@ambest.com Jim
Peavy, 908-439-2200, ext. 5644 james.peavy@ambest.com : mailto:james.peavy@ambest.com