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TMCNet:  Fitch Affirms and Withdraws Infinity's Ratings

[December 12, 2013]

Fitch Affirms and Withdraws Infinity's Ratings

CHICAGO --(Business Wire)--

Fitch Ratings has affirmed and withdrawn the ratings for Infinity Property & Casualty Corporation (Infinity) (NASDAQ:IPCC) and its subsidiaries as follows:

--Long-term Issuer Default Rating (IDR) at 'BBB+';

--$275 million senior notes due 2022 'BBB';

--Insurer Financial Strength (IFS) rating of the operating subsidiaries at 'A'.

The Rating Outlook is Stable for all affirmed ratings. Fitch has decided to discontinue the ratings, which are uncompensated. A full list of rating actions is provided at the end of this release.

KEY RATING DRIVERS

The affirmation reflects IPCC's quality balance sheet characterized by strong capitalization and adequate underwriting results and improving loss reserving levels.

Offsetting these positives is Infinity's business concentration in the California auto market, which represents approximately 49% of net written premiums. Also, Infinity is challenged as a medium sized personal auto specialist to compete with insurers with greater capital bases and operating scale, and to manage regulatory and operating risks inherent to this business segment.

Infinity is one of the largest non-standard auto insurance companies in the country. The average non-standard automobile consumer is more likely to be impacted by broader negative economic issues than the standard or preferred automobile consumer. This may impede premium growth or negatively impact customer retention.

Fitch has affirmed and withdrawn the following ratings:

Infinity Property Casualty Corp.

--IDR at 'BBB+';

--$275 million 5% senior unsecured note due September 2022 at 'BBB'.

Fitch has also affirmed and withdrawn the following IFS ratings at 'A':

Hillstar Insurance Co

Infinity Assurance Insurance Co

Infinity Auto Insurance Co

Infinity Casualty Insurance Company

Infinity County Mutual Insurance Company

Infinity Indemnity Insurance Co

Infinity Insurance Company

Infinity Preferred Insurance Co

Infinity Reserve Insurance Co

Infinity Safeguard Insurance Co

Infinity Security Insurance Company

Infinity Select Insurance Co

Infinity Standard Insurance Co

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Insurance Rating Methodology' (Nov. 13, 2013).

Applicable Criteria and Related Research:

Insurance Rating Methodology -- Amended

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=723072

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=811639

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON (News - Alert) THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.


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