A.M. Best Upgrades Rating of Guardian Insurance Company, Inc

Business Wire,  June 25, 2008  

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OLDWICK, N.J. -- A.M. Best Co. has upgraded the issuer credit rating to "bbb+" from "bbb" and affirmed the financial strength rating of B++ (Good) of Guardian Insurance Company, Inc. (Guardian Insurance) (U.S., Virgin Islands). The outlook for both ratings is stable.

These rating actions reflect Guardian Insurance's favorable operating results, dominant automobile market share, strong name recognition in the U.S., Virgin Islands (USVI) marketplace and the financial support Guardian Insurance receives from its ultimate parent, Lockhart Companies Incorporated (LCI).

Guardian Insurance has established strong name recognition and is the leading automobile writer with a dominant share of the local market. The company's underwriting and operating results have improved substantially in recent years and compare favorably to its industry composite. In addition, Guardian Insurance benefits from the financial support it receives from LCI, a major real estate developer in the USVI. Support has been demonstrated by past capital contributions to enhance Guardian Insurance's operations and improve its capitalization and LCI's stated willingness to make further cash infusions if needed.

Partially offsetting these positive rating factors is the company's elevated expense structure, high dependence on reinsurance and the geographic concentration of Guardian Insurance's business in the USVI.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

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