Fitch Ratings has affirmed Infinity Property & Casualty Corporation’s ratings (Infinity) (NASDAQ: IPCC) as follows:
–Long-term IDR at ‘BBB+’;
–$200 million senior notes due 2014 ‘BBB’;
–Insurer financial strength (IFS) at ‘A’.
For a complete list of subsidiary ratings, see below. The Rating Outlook is Stable.
The ratings are based on Infinity’s solid underwriting results, quality balance sheet, strong capitalization and adequate loss reserving levels. Offsetting these positives are Infinity’s business concentration in the California auto market, which represents approximately 53% of gross written premiums, increased competitive landscape, and exposure to political and operating uncertainty.
Infinity is the seventh largest non-standard auto insurance company in the country. As of March 31, 2008, Infinity had total GAAP capital of $812 million. The corporation’s debt-to-total capital ratio was 25%, below Fitch’s 30% tolerance for the current rating category. Fitch notes that earnings based interest coverage was 9.0 times for the period, and anticipates that the company will continue to maintain adequate interest coverage levels to support debt servicing requirements going forward.
Infinity reported a statutory underwriting combined ratio of 99.3% for the first quarter-2008 (1Q’08), compared with 98.3% for full year 2007. Infinity reported net earned premium revenues of $235.1 million for 1Q’08, down slightly from $256 million reported for 1Q’07.
Infinity’s personal lines insurance operations utilize an extensive independent agency sales force of approximately 13,000 agents. Infinity reported GAAP consolidated assets of $2 billion and total shareholder equity of $612.5 million as of March 31, 2008.
Fitch has also affirmed the following IFS ratings at ‘A’ with a Stable Outlook:
Hillstar Insurance Co
Infinity Assurance Insurance Co
Infinity Auto Insurance Co
Infinity Casualty Insurance Company
Infinity County Mutual Insurance Company
Infinity General Insurance Co
Infinity Indemnity Insurance Co
Infinity Insurance Company
Infinity Preferred Insurance Co
Infinity Premier Insurance Co
Infinity Reserve Insurance Co
Infinity Safeguard Insurance Co
Infinity Security Insurance Company
Infinity Select Insurance Co
Infinity Specialty Insurance Co
Infinity Standard Insurance Co