NU Online News Service, July 8, 3:15 p.m. EDT

Allstate Floridian Insurance Group, which changed its name lastweek to Castle Key Group to "clarify" that it is separatelycapitalized from Allstate Insurance Company, has been downgraded byA.M. Best Co.

Oldwick, N.J.-based Best noted that the action came on the St.Petersburg, Fla.-based group because of its unprofitable experienceand exposure to hurricanes and Florida's market dislocations.

Best lowered the group's financial strength rating to "B-minus"(fair) from "B-plus" (very good) and the issuer credit ratings(ICR) to "bb-minus" (poor) from "bbb-minus" (marginal). The outlookfor all ratings is negative.

"The rating downgrades and negative outlook are based on CastleKey's continued deterioration in risk-adjusted capitalization,particularly as measured by A.M. Best on a catastrophe stresstested basis," the rating agency said.

"As the group is the dedicated Florida property writer for itsparent company, Allstate Insurance Company, Castle Key continues tomaintain significant exposure to hurricanes and is susceptible tomarket dislocations and regulatory changes."

Best added that it expects parental support for claims payingability despite the group's re-branding. "To the extent suchparental support is not provided, it would be necessary for A.M.Best to re-evaluate the ratings of Castle Key and potentially thecurrent FSR of 'A-plus' [very good] and ICRs of 'aa-minus'[excellent] of Allstate and all of the remaining Allstate InsuranceGroup member companies," the rating agency added.