The financial gurus at A.M. Best -- which has raised the bar in
measuring hurricane risks -- takes a cautious view to one of Florida's
largest private insurance companies.

Best not only lowers Nationwide Insurance Company of Florida to a B-
rating, but adds to the downgrade the stigma of a "negative outlook."

It cites the potential of a 100-year hurricane as the cause for
concern. Despite buying reinsurance from its national parent as well as
the citizens of Florida, Best says Nationwide of Florida would suffer
"substantial decline in capitalization after a 100-year hurricane."

The credit rating company adds that new calculations of what
Nationwide's Florida storm losses would be have increased.

How Best measures such a storm is different than how Florida
regulators measure a hurricane. The rating company requires insurers to
use computer models that figure in the current frequency of hurricanes,
and adds to losses the damage expected from storm surge, even though
Florida law now exempts property insurers from paying for flood damage.