A.M. Best Ratings Recap

Rating Assigned: Pan-American Casualty

A.M. Best assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of “a” to Pan-American Casualty Co. (PACC) in Richardson, Texas.The outlook is stable.

The ratings reflect PACC’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. Additionally, PACC benefits from the strategic importance, capital support and integration with the Pan-American Life Insurance Group, as a vehicle for writing employer liability business in Texas, which the state classifies as property/casualty coverage.

In addition, the vast majority of the business will initially be reinsured to an affiliated company, INRECO International Reinsurance Co.

Outlooks Revised: Standard Casualty

A.M. Best revised the outlooks to negative from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Standard Casualty Co. (Standard Casualty), based in New Braunfels, Texas.

Standard Casualty is a subsidiary of Cavco Industries Inc. (Cavco), which manufactures factory built homes.

The ratings reflect Standard Casualty’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The revised outlooks are based on the deterioration in the financial performance of Standard Casualty observed in recent years driven by frequent and severe weather-related losses (hail and hurricane).

These negative rating factors are somewhat offset by Standard Casualty’s balance sheet strength, vertical integration with its parent’s factory built home business, history of capital contributions from Cavco, local market knowledge and continued geographic diversification into New Mexico and Arizona markets.