What’s New: In Brief (February 09, 2010)

A.M. Best Co. has affirmed Echelon General Insurance Company’s financial strength rating of B++ (good) and issuer credit rating (ICR) of ‘bbb+.’
EGI Financial Holdings (EFH), Echelon’s publicly traded parent, also had its ICR of ‘bb+’ affirmed.
The outlook for all ratings is stable.
“The ratings for Echelon General are reflective of its strong risk-adjusted capitalization, historical profitability, improving product line and geographic diversification, experienced management team in the non-standard auto and niche product markets as well as the additional financial flexibility of EFH,” an A.M. Best release said.
“These strengths are partially offset by the company’s concentration in the volatile Ontario auto market, strong competitive market pressures and the challenges it faces in its quest to grow in the Florida and Southern U.S. non-standard auto markets.”

The composite commercial property and casualty rate in the U.S. was down 4% for January 2010, prolonging the soft market, reported MarketScout.
Directors’ and officers’ liability rates, one of the several coverages that went several months in 2009 without rate decreases, started 2010 with an average rate decrease of 2% in January, said Richard Kerr, MarketScout’s CEO.
“We are in the market doldrums and will be here until something changes,” he said in a release. “Insurers must be patient. Rates will adjust but nothing will happen quickly without a cataclysmic event of significant magnitude.”