Best Lowers Rating on Paula

Paula Insurance Co., Pasadena, Calif., has had its financial strength rating by A.M. Best Co. lowered to B- (Fair) from B (Fair). Best has placed the company under review with developing implications. Best says in a statement that the rating action reflects Paula's increased underwriting leverage position through year-end 2000. For the third year in a row, adverse development on prior year's loss reserves severely dampened the company's underwriting performance, culminating in a net loss for the year. Additionally, the company's policyholder surplus level has dropped nearly 65% since year-e...