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FOR IMMEDIATE RELEASE
OLDWICK - FEBRUARY 11, 2014 01:26 PM (EST)
A.M. Best Co. has assigned a financial strength rating (FSR) of A (Excellent) and an issuer credit rating (ICR) of "a" to MEMIC Casualty Company (MEMIC Casualty) (Burlington, VT). The outlook assigned to both ratings is stable.
Concurrently, A.M. Best has affirmed the FSR of A (Excellent) and ICRs of "a" of MEMIC Casualty's parent, Maine Employers' Mutual Insurance Company (MEMIC) (Portland, ME), and MEMIC's other wholly-owned subsidiary, MEMIC Indemnity Company (MEMIC Indemnity) (Manchester, NH). All three are collectively referred to as MEMIC Group. The outlook for these ratings is stable.
The ratings assigned to MEMIC Casualty reflect its strong capitalization, strategic importance to MEMIC Indemnity providing an alternative rating approach, as well as the explicit financial support of MEMIC.
The rating affirmations for MEMIC and MEMIC Indemnity recognize MEMIC Group's strong capitalization and historically favorable operating performance, which are based on the consolidated results of its members. The ratings further acknowledge the group's experienced management team, conservative operating philosophy, and MEMIC's solid market position and excellent reputation among Maine policyholders for its high level of service and profit sharing. The group's positive attributes are derived from its demonstrated underwriting principles, conservative investment policy, aggressive claims management practices and firm commitment to loss control and in-depth safety education and training services.
Notwithstanding, MEMIC, MEMIC Indemnity and MEMIC Casualty's ratings and outlook could come under pressure should soft market conditions and a lack of underwriting discipline result in the group's underwriting and overall profitability underperforming its peers for a sustained period or should there be a material decline in the group's risk-adjusted capitalization.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology .
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.