OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has downgraded the financial strength rating to C+ (Marginal) from C++ (Marginal) and the issuer credit rating to “b-” from “b” of IFA Insurance Company (IFA) (Clark, NJ). The outlook for both ratings is negative. Concurrently, A.M. Best has withdrawn the ratings in response to the company’s request to no longer participate in the A.M. Best’s interactive rating process.
The rating downgrades reflect IFA’s net losses and surplus declines through third quarter 2014 and the uncertainty surrounding full year 2014 results. Unprofitable underwriting performance has resulted in the continued deterioration in the company’s risk-adjusted capitalization.
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
- Catastrophe Analysis in A.M. Best Ratings
- Risk Management and the Rating Process for Insurance Companies
- Understanding BCAR for Property/Casualty Insurers
This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.
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