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OLDWICK, N.J.--([ BUSINESS WIRE ])--A.M. Best Co. has assigned a debt rating of abbba to the $275 million 5.0% 10-year senior unsecured notes of Infinity Property & Casualty Corporation (Infinity) (headquartered in Birmingham, AL) (NASDAQ: IPCC) that were issued on September 19, 2012. The assigned outlook is stable. Infinityas existing financial strength, issuer credit and debt ratings are unchanged.

"Risk Management and the Rating Process for Insurance Companies"

A.M. Best anticipates the proceeds from this issuance will be used to redeem the $195 million 5.5% 10-year senior unsecured notes due February 18, 2014. Any remaining proceeds will be used for general corporate purposes.

While Infinity maintains financial leverage and interest coverage that are in line with its current ratings, its debt-to-total capital ratio has increased in the short term due to this additional debt issuance. However, it is projected to decrease to approximately 30.0% at year-end 2012. This is due to the planned redemption of the $195 million 5.5% 10-year senior unsecured notes, which is scheduled to take place on October 17, 2012.

On March 21, 2012, A.M. Best affirmed Infinityas ICR of abbba with a stable outlook.

The methodology used in determining these ratings is Bestas Credit Rating Methodology, which provides a comprehensive explanation of A.M. Bestas rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: aCatastrophe Analysis in A.M. Best Ratingsa; aInsurance Holding Company and Debt Ratingsa; aRisk Management and the Rating Process for Insurance Companiesa; and aUnderstanding BCAR for Property/Casualty Insurers.a Bestas Credit Rating Methodology can be found at [ www.ambest.com/ratings/methodology ].

Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit [ www.ambest.com ].

Copyright 2012 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.