AM Best has revised the outlooks of California Insurance Company and its affiliates, collectively known as North American Casualty Group (NAC), to ‘stable’ from ‘negative’. The agency has also affirmed the financial strength rating of ‘A-’ (Excellent) and the long-term issuer credit ratings of ‘a-’ (Excellent) for California Insurance Company and its affiliates under NAC. The revised outlook reflects improved governance measures across NAC. AM Best notes that previous delays in financial audits have been addressed by strengthening the company’s financial reporting team and restructuring its board of directors. The group completed its 2024 audits ahead of schedule and has appointed a more prominent auditor, signalling a commitment to long-term compliance and oversight. While a protracted legal dispute concerning a conservatorship order remains ongoing, AM Best currently views any potential financial consequences as immaterial. The agency states it will continue to monitor the situation and respond to any future developments as required. AM Best assesses NAC’s balance sheet strength as very strong and its operating performance as strong. The group’s business profile remains limited, with enterprise risk management evaluated as ‘marginal’.
