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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - NOVEMBER 07, 2013 12:00 AM (EST)
A.M. Best Co. has revised the outlook for the issuer credit rating (ICR) of “a” to positive from stable for Co-operative Insurance Companies (Co-operative) (Middlebury, VT). A.M. Best also has affirmed the financial strength rating of A (Excellent) and ICR of Co-operative. The outlook for the FSR is stable.
The rating actions reflect Co-operative’s solid risk-adjusted capitalization, consistently strong underwriting and operating performance and its market position as a leading personal lines writer in Vermont. The ratings also acknowledge the company’s favorable loss reserve development and low underwriting leverage.
Partially offsetting these positive rating factors is Co-operative’s concentration of business in Vermont and New Hampshire, which exposes it to weather-related storm losses, competitive market conditions and regulatory actions. Nevertheless, Co-operative does continue to maintain an effective reinsurance program to help mitigate the effects of severe weather-related events.
Co-operative’s ratings could further benefit from producing consistently favorable earnings while maintaining strong risk-adjusted capitalization. However, Co-operative’s ratings and outlook may come under negative pressure if an unfavorable earnings trend develops and its capital deteriorates.
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.