A.M. Best Co. in Oldwick, N.J., has upgraded the financial strength ratings of four Encompass companies that are part of the Allstate Insurance Group of Northbrook, Ill., to A-plus, from A-minus, and issuer credit ratings to "aa" from "a-minus."
Encompass Home and Auto Insurance Co., Encompass Independent Insurance Co., Encompass Insurance Co. of America, and Encompass Property and Casualty Co. are the companies upgraded. The rating outlooks for the companies' financial strength are stable, but those for their issuer credit were revised to negative from stable, the ratings agency said on Tuesday.
A.M. Best also assigned an A-plus financial strength rating and an "aa" issuer credit rating to Encompass Insurance Co. of Massachusetts. The outlook for the former is stable, but that for the latter is negative. The ratings and outlooks of Allstate's remaining Encompass companies were unchanged.
The ratings reflected the companies' inclusion as members of Allstate as they are fully integrated operationally and become integral to Allstate's strategic goal of multiple distribution channels.
In October 1999, Allstate bought the assets and liabilities of CNA Insurance Cos.' personal lines business as part of its strategy to expand growth opportunities by gaining access to the independent agent distribution channel. In addition Allstate got an option to buy the Encompass companies from CNA, which it exercised Oct. 1, 2005.
