Standard & Poor's Ratings Services has raised its counterparty credit and financial strength ratings on Novato, Calif.-based Fireman's Fund Insurance Co. and affiliates to "single-A-plus" from "single-A." The outlook is positive.

S&P credit analyst Michael Gross said the upgrade reflects the insurer's "significant progress" in strengthening its business while improving its overall risk management working with its parent company Allianz.

"The positive outlook reflects the potential for the insurer to achieve further integration and success with Allianz group and its North American affiliates with regards to enterprise risk management as well as shared services and expense synergies," Mr. Gross added.

S&P said it expects Fireman's Fund to generate low single-digit premium growth in 2007 and 2008 as the insurer aims to preserve its profitable business rather than pursue market-share growth in a soft pricing environment.

The insurer is expected to generate approximately $650 million in net statutory earnings in 2007, S&P said, and produce a strong combined ratio in the low 90 range.

The insurer may experience some pressures from the soft market in 2008 but the company is expected to sustain strong operating fundamentals.

The company could see a one notch upgrade in 12 months if it continues to demonstrate continued integration success with its parent company.

Moody's rating service issued a note affirming its "A2" rating on the insurer, adding the outlook remains stable.

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S&P Raises Rating On Fireman's

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