A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit rating of ?a? of Computer Insurance Company (Providence, RI). The outlook for both ratings is stable.

The ratings reflect Computer Insurance Company's outstanding profitability, conservative operating strategy and management's specialty underwriting expertise within its captive niche market. The rating outlook is based upon the company's strong operating margins and low underwriting leverage.

The ratings also acknowledge the advantages derived from Computer Insurance Company's affiliation with its immediate parent, Hewlett-Packard Financial Services (HPFS), and the synergies gained from the company's effective low-cost distribution platform, as well as preferential access to its insureds via the customer network of its ultimate parent, Hewlett-Packard Company (HP) [NYSE: HPQ].

The principle product offered by Computer Insurance Company provides extended maintenance to HP customers. The hardware policy, branded as Recover-All Service, provides extended coverage protection from a wide range of natural and man-made disasters, accidents and environmental hazards in a data center following a covered loss. Periodically, Computer Insurance Company dividends accumulated earnings to HPFS, most recently $20 million in the third quarter of 2009.

The principal methodology used in determining these ratings is Best's Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best's rating process and highlights the different rating criteria employed. Additional key criteria utilized include: ?Risk Management and the Rating Process for Insurance Companies? and ?Understanding BCAR for Property/Casualty Insurers.? Methodologies 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 © 2011 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

A.M. Best Co.
Richelle Bryan, 908-439-2200, ext. 5344
Financial Analyst
richelle.bryan@ambest.com
or
Joseph Roethel, 908-439-2200, ext. 5630
Assistant Vice President
joseph.roethel@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com