A.M. Best Revises Outlook to Stable for Safety National Group

A.M. Best Co. has revised the outlook to stable from negative and affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICRs) of “a” of Safety National Group, the group of property/casualty subsidiaries of Delphi Financial Group, Inc. (Delphi Financial) (Wilmington, DE) [NYSE:DFG]. The ratings apply to Safety National Casualty Corporation (SNCC) (St. Louis, MO) and its reinsured affiliate, Safety First Insurance Company (SFIC) (Chicago, IL), which operate as Safety National Group.

The revised outlook reflects Safety National’s solid profitability levels, which continue to outperform the peer composite, and A.M. Best's expectation for additional surplus growth achieved through strong earnings over the near term.

The affirmations reflect the group's strong operating performance, solid capitalization achieved in part through explicit capital support from its parent, Delphi Financial, and its established market presence within the excess workers’ compensation market.

Partially offsetting these positive factors are the areas of ongoing, yet declining, adverse development occurring on prior accident years, the earnings drag associated with these years, and the impact of investment market fluctuations in recent years, which has constrained the group's ability to internally generate capital.

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

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