Calif. State Auto Bureau Downgraded

The financial strength rating (FSR) of the California State Automobile Association Inter-Insurance Bureau was downgraded from “A+” to “A” by A.M. Best. Best indicated that the downgrade reflected a downturn in the Bureau’s post-dividend operating earnings in recent years. In addition, Best said it expected the restoration of profitability levels relative to “A+” standards to be a challenge to the Bureau in the near term. However, the Bureau maintains outstanding financial strength and remains a dominant personal auto market presence in its selected operating territories, specifically in California.