OLDWICK, N.J. - (Business Wire) A.M. Best Co. has assigned a financial strength rating (FSR) of B++ (Good) and an issuer credit rating (ICR) of “bbb” to Censtat Casualty Company (CCC) (Omaha, NE). The outlook assigned to the FSR is stable, while the outlook assigned to the ICR is positive.

 

The ratings reflect CCC’s excellent risk-adjusted capitalization and implicit support from its parent, Central States Health & Life Co. of Omaha (CSO) (Omaha, NE). These strengths are somewhat offset by CCC’s limited product diversification and execution risk associated with implementing a business plan within the current regulatory and legislative environment. This is further compounded by the challenges of operating within the current U.S. economy as product offerings are tied to the availability and use of consumer credit.

Despite these concerns, the outlooks reflect the company’s current and projected excellent risk-adjusted capitalization (utilizing company provided projections) and trends in the credit insurance marketplace, which depict enhanced use of contractual liability insurance policies as the lending industry shifts from traditional credit insurance to debt cancellation products.