Sterling Casualty’s ‘BBBpi’ Affirmed

The “BBBpi” FSR on Newport Beach, Calif.-based Sterling Casualty Insurance Co. was affirmed by Standard & Poor’s (S&P). Cited as major rating factors were the company’s high common stock leverage, volatile premium revenues and two-year reserve development ratio. Those factors were offset by the company’s extremely strong capitalization adequacy and good operating performance.

Wholly owned by H&H Agency Inc., Sterling Casualty Insurance Co. is rated on a stand-alone basis. It writes mainly private passenger auto with a specialization in the nonstandard market, and is licensed only in California.