OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has downgraded the financial strength rating (FSR) to B- (Fair) from B+ (Good) and issuer credit ratings (ICR) to "bb-" from "bbb-" of Castle Key Group (Castle Key) and its members, formerly known as Allstate Floridian Insurance Group (headquartered in St. Petersburg, FL). The outlook for all ratings is negative. (See below for a detailed listing of the companies.)

The rating downgrades and negative outlook are based on Castle Key's continued deterioration in risk-adjusted capitalization, particularly as measured by A.M. Best on a catastrophe stress tested basis.

As the group is the dedicated Florida property writer for its parent company, Allstate Insurance Company (Allstate) (Northbrook, IL), Castle Key continues to maintain significant exposure to hurricanes and is susceptible to market dislocations and regulatory changes. The ratings also reflect the group's continued unprofitable operating performance. Although Castle Key is separately capitalized and is not reinsured by Allstate, the ratings recognize the historical financial and operational support provided by Allstate. Despite the recent re-branding from Allstate Floridian Insurance Group to Castle Key, A.M. Best expects that parental support regarding the claims paying ability of Castle Key commensurate with the revised ratings will be maintained in the event of frequent and/or severe hurricane activity. To the extent such parental support is not provided, it would be necessary for A.M. Best to re-evaluate the ratings of Castle Key and potentially the current FSR of A+ (Superior) and ICRs of "aa-" of Allstate and all of the remaining Allstate Insurance Group member companies.


The FSR has been downgraded to B- (Fair) from B+ (Good) and the ICRs to "bb-" from "bbb-" of Castle Key Group and its following members:

• Castle Key Insurance Company
  
  (formerly Allstate Floridian Insurance Company)

• Castle Key Indemnity Company
  
  (formerly Allstate Floridian Indemnity Company)

• Encompass Floridian Insurance Company
• Encompass Floridian Indemnity Company

For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.



A.M. Best Co.

Analysts

Kenneth Tappen, 908-439-2200, ext. 5248

kenneth.tappen@ambest.com

or

Jeffrey Mango, CPA, 908-439-2200, ext. 5204

jeffrey.mango@ambest.com

or

Public Relations

Jim Peavy, 908-439-2200, ext. 5644

james.peavy@ambest.com

or

Rachelle Morrow, 908-439-2200, ext. 5378

rachelle.morrow@ambest.com

Source: A.M. Best Co.