AM Best


A.M. Best Revises Outlook to Positive from Stable for Co-Operative Insurance Companies


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Michael Russo

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michael.russo@ambest.com

Rick Decker

(908) 439-2200, ext. 5423

rick.decker@ambest.com

Public Relations

Jim Peavy

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Rachelle Morrow

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rachelle.morrow@ambest.com


FOR IMMEDIATE RELEASE

OLDWICK, N.J. - JANUARY 16, 2008 12:00 AM (EST)
A.M. Best Co. has revised the outlook to positive from stable for the financial strength rating (FSR) of Co-Operative Insurance Companies (Co-Operative) (Middlebury, VT). A.M. Best also has affirmed the FSR of A- (Excellent) and assigned an issuer credit rating (ICR) of "a-" to Co-Operative. The outlook for the ICR is positive.

The ratings of Co-Operative reflect its strong risk-adjusted capitalization and sustained favorable underwriting performance over several years. In addition, Co-Operative maintains a prominent market position as one of the leading farmowner and property writers in Vermont. Co-Operative's solid capital position is based on modest investment leverage, conservative reserving practices and several years of positive operating income.

Offsetting these positive rating factors are the company's concentration of risks in two New England states that expose it to weather-related storm losses, competitive market conditions and regulatory decisions. The revised outlook recognizes Co-Operative's strong capital position, sustained underwriting profitability relative to its personal lines composite and risk management strategies designed to maintain profitable underwriting results.

Co-Operative's favorable operating performance was due to a series of profit driven initiatives that were implemented over several years, including rate modifications across all lines, the re-underwriting of its entire book of business and the utilization of exposure management

systems.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.

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AMB# Company Name
004188 Co-operative Insurance Companies