Standard & Poor's Affirms Ocean Harbor Casualty Insurance Co. 'BBpi' FSR

Apr 13, 2001, 01:00 ET from Standard & Poor's

    NEW YORK, April 13 /PRNewswire/ -- Standard & Poor's today affirmed its
 double-'Bpi' financial strength rating on Ocean Harbor Casualty Insurance Co.
 (OHCIC).
      The rating action reflects the company's volatile premium revenue and
 operating performance, partially offset by adequate capitalization.
     Based in Tallahassee, Fla., OHCIC (NAIC: 12360) writes private passenger
 auto liability and auto physical damage insurance on a direct basis, as well
 as assumed business from Clarendon National.  The vast majority of the
 company's business lies in its home state, and its products are distributed
 primarily through independent general agents.  The company, which began
 business in 1986, is licensed in Florida, California, and Oklahoma.  Ultimate
 ownership of OHCIC is held by the Milo Family, private individuals from
 Florida.
 
     Major Rating Factors:
 
     -- The company displays more volatility in its premium revenues than do
        companies receiving a higher rating.  Year-to-year changes in net
        premiums written have varied drastically since 1996, with increases of
        as much as 175% in 1997 and a decline of 32% in 1999.
     -- Operating performance has been marginal, with a weighted average ROR
        from 1996-1999 at 4.1%.  In addition, the company has volatile returns,
        with ROR ranging from negative 13.6% to positive 10.1% for the years
        1996 and 1998, respectively. This is a limiting factor.
     -- At year-end 1999, capitalization, as measured by Standard & Poor's
        model, was considered adequate for the rating level.  The NAIC
        risk-based capital ratio was also appropriate for the rating, but below
        the industry median at 191.5%.  However, the company's level of
        geographic and product-line concentrations require even greater
        capitalization for a higher rating.
 
     Ratings with a 'pi' subscript are insurer financial strength ratings based
 on an analysis of an insurer's published financial information an additional
 information in the public domain.  They do not reflect in-depth meetings with
 an insurer's management and are therefore based on less comprehensive
 information than ratings without a 'pi' subscript.  Ratings with a 'pi'
 subscript are reviewed annually based on a new year's financial statements,
 but may be reviewed on an interim basis if a major event that may affect the
 insurer's financial security occurs. Ratings with a 'pi' subscript are not
 subject to potential CreditWatch listings.
     Ratings with a 'pi' subscript generally are not modified with "plus" or
 "minus" designations.  However, such designations may be assigned when the
 insurer's financial strength rating is constrained by sovereign risk or the
 credit quality of a parent company or affiliated group, Standard & Poor's
 said. -- CreditWire.
 
 

SOURCE Standard & Poor's
    NEW YORK, April 13 /PRNewswire/ -- Standard & Poor's today affirmed its
 double-'Bpi' financial strength rating on Ocean Harbor Casualty Insurance Co.
 (OHCIC).
      The rating action reflects the company's volatile premium revenue and
 operating performance, partially offset by adequate capitalization.
     Based in Tallahassee, Fla., OHCIC (NAIC: 12360) writes private passenger
 auto liability and auto physical damage insurance on a direct basis, as well
 as assumed business from Clarendon National.  The vast majority of the
 company's business lies in its home state, and its products are distributed
 primarily through independent general agents.  The company, which began
 business in 1986, is licensed in Florida, California, and Oklahoma.  Ultimate
 ownership of OHCIC is held by the Milo Family, private individuals from
 Florida.
 
     Major Rating Factors:
 
     -- The company displays more volatility in its premium revenues than do
        companies receiving a higher rating.  Year-to-year changes in net
        premiums written have varied drastically since 1996, with increases of
        as much as 175% in 1997 and a decline of 32% in 1999.
     -- Operating performance has been marginal, with a weighted average ROR
        from 1996-1999 at 4.1%.  In addition, the company has volatile returns,
        with ROR ranging from negative 13.6% to positive 10.1% for the years
        1996 and 1998, respectively. This is a limiting factor.
     -- At year-end 1999, capitalization, as measured by Standard & Poor's
        model, was considered adequate for the rating level.  The NAIC
        risk-based capital ratio was also appropriate for the rating, but below
        the industry median at 191.5%.  However, the company's level of
        geographic and product-line concentrations require even greater
        capitalization for a higher rating.
 
     Ratings with a 'pi' subscript are insurer financial strength ratings based
 on an analysis of an insurer's published financial information an additional
 information in the public domain.  They do not reflect in-depth meetings with
 an insurer's management and are therefore based on less comprehensive
 information than ratings without a 'pi' subscript.  Ratings with a 'pi'
 subscript are reviewed annually based on a new year's financial statements,
 but may be reviewed on an interim basis if a major event that may affect the
 insurer's financial security occurs. Ratings with a 'pi' subscript are not
 subject to potential CreditWatch listings.
     Ratings with a 'pi' subscript generally are not modified with "plus" or
 "minus" designations.  However, such designations may be assigned when the
 insurer's financial strength rating is constrained by sovereign risk or the
 credit quality of a parent company or affiliated group, Standard & Poor's
 said. -- CreditWire.
 
 SOURCE  Standard & Poor's