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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MARCH 12, 2010 12:00 AM (EST)
A.M. Best Co. has revised the outlook to positive from stable and affirmed the financial strength rating of B++ (Good) and issuer credit rating of "bbb+" of Central Co-Operative Insurance Company (Central Co-Op) (Baldwinsville, NY).
The ratings reflect Central Co-Op's favorable risk-adjusted capitalization and long-standing local market presence in its operating territory. Central Co-Op's strong capital position is the outcome of several years of positive underwriting results stemming from strict underwriting guidelines, coupled with a portfolio of invested assets that generated a steady stream of investment income. As a result, Central Co-Op has been able to grow its surplus to record levels. The positive outlook is based upon the company's trend of positive operating performance and growing surplus base.
These rating factors are partially offset by Central Co-Op's geographic concentration of risk as a property writer in north central New York, making it susceptible to frequent and severe weather-related events and competitive market conditions.
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.