Highlands Downgraded by A.M. Best

A.M. Best Co. has downgraded the financial strength rating of Highlands Insurance Group Inc., Lawrenceville, N.J., to C- (Weak) from B (Fair). The downgrade reflects the group's weak capitalization, poor operating performance, regulatory constraints and significant near-term debt-servicing requirements at its parent. Best says the group's operating results have been plagued by substantial underwriting losses stemming from significant adverse loss-reserve development. The bulk of the reserve development--amounting to $48 million and $52.8 million in 2000 and through the first three quarters ...