RTW Inc. has reported that A.M. Best Co. increased the financial strength rating of its subsidiary, American Compensation Insurance Company (ACIC) to “B” from “B-.” Best cited improved capitalization and operating performance as the primary factors contributing to the increase. The company increased the capital and surplus to $26.8 million in 2002 from $19.5 million in 2001 as a result of improved operations in 2002.
According to Best, “The rating change reflects a new, experienced management team in place since December 2001, further, the company has closed unprofitable regions, reduced premiums in force, improved pricing and refocused on its specific underwriting niche and intense claims and case management.
“Using its proprietary claims and case management system, ACIC consistently closes claims more quickly and at a lower average cost per claim than the rest of the workers’ compensation industry. Surplus increased considerably in 2002. The rating outlook is stable at this time.”
Minneapolis, Minn.-based RTW expects continued profitability in 2003, according to its CEO. RTW manages workers’ compensation programs for insured and self-insured employers.
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