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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - DECEMBER 18, 2009 12:00 AM (EST)
A.M. Best Co. has upgraded the financial strength rating to A (Excellent) from A- (Excellent) and issuer credit rating to "a" from "a-" of Co-Operative Insurance Companies (Co-Operative) (Middlebury, VT). The outlook for both ratings has been revised to stable from positive.
These rating actions reflect Co-Operative's strong risk-adjusted capitalization, favorable underwriting performance and well-established local market position. Co-Operative has maintained strong capitalization based on its relatively modest underwriting leverage, conservative reserving practices and several years of positive operating income.
Offsetting these positive rating factors is the company's concentration of risk in two New England states that exposes it to weather-related storm losses, competitive market conditions and regulatory actions.
Co-Operative's operating performance consistently outperformed the composite as a result of a series of profit-driven initiatives that were implemented over several years, including rate modifications, re-underwriting of its entire book of business and the implementation of effective risk management strategies. The company also benefits from its prominent market position as one of the leading farm owners and property writers in Vermont.
For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit Best's Ratings & Analysis .
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at Best's Credit Rating Methodology.
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.