Rating of 20th Century Subsidiaries Again Cut
20th Century Industries’ two insurance subsidiaries had their claims-paying ability ratings cut for the second time in a week Friday as a result of the Jan. 17 Northridge earthquake.
Standard & Poor’s Corp. said it lowered the claims-paying ratings for 20th Century Insurance and 21st Century Casualty to BBB+ from A. Three days earlier, the rating agency lowered the units’ ratings from AA.
The second ratings reductions came after Woodland Hills-based 20th Century Industries said it lost $256 million in the first quarter because of expected earthquake claims totaling $475 million.
The latest ratings mean that the 20th Century Industries insurance units are considered to have adequate financial security, but are susceptible to adverse economic and underwriting conditions. Standard & Poor’s also said 20th Century Industries and its subsidiaries are being watched for possible further ratings cuts.
The credit-assessment rating of 20th Century Industries was also downgraded by Standard & Poor’s on Friday, to BB+ from A+ before the first rate reduction.
