Best’s News & Research Service - March 29, 2016 11:58 AM (EDT)
A.M. Best Upgrades Ratings of Celina Insurance Group Members
- March 29, 2016 11:58 AM (EDT)
Oldwick //BestWire// - A.M. Best has upgraded the financial strength rating (FSR) to “A-” (Excellent) from B++ (Good) and the issuer credit rating (ICR) to “a-” from “bbb+” of The Celina Mutual Insurance Company (Celina, OH), Miami Mutual Insurance Company (Celina, OH), National Mutual Insurance Company (Celina, OH) and West Virginia Farmers Mutual Insurance Association (Clarksburg, WV), which are members of the Celina Insurance Group (Celina). The outlook for all ratings has been revised to stable from positive.
The upgrade of Celina’s ratings reflects an improved trend of underwriting performance together with steady investment and other income over several years that together drove policyholders’ surplus appreciation over the same period. Celina’s accomplishments reflect the success of operational and underwriting strategies designed and implemented to strengthen its business profile while improving profitability. In addition, Celina has benefited from somewhat less severe weather-related claims activity while taking advantage of its network of longstanding and strong agency relationships and the use of predictive analytics which has enhanced its risk selection and pricing capabilities. Celina continues to expand its commercial lines product offerings, which the management team believes will further reduce its personal lines exposures and contribute to sustaining long-term profitability. Overall risk-adjusted capitalization has improved as management took the necessary steps to de-risk its balance sheet and adopt an enterprise risk management process that contains a comprehensive catalog of risks and conservative risk tolerances.
Partially offsetting the positive rating factors is Celina’s above-average expense ratio and geographic concentration in Ohio and Indiana, which exposes the group to potential weather-related losses. While the group maintains a well-established regional market presence, management has implemented a strategy to expand in states outside its current primary operating territory. This will pose some challenges as Celina must adapt to the regulatory environment and competitive activity in these states.
Further positive rating action may follow if Celina continues its favorable underwriting and operating performance, while improving its risk-adjusted capitalization. Negative rating action may follow a sudden or substantial deterioration in underwriting and operating results and significant decline in risk-adjusted capitalization.
This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page.
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