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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - APRIL 10, 2008 12:00 AM (EDT)
A.M. Best Co. has upgraded the financial strength rating to A- (Excellent) from B++ (Good) and issuer credit rating to "a-" from "bbb+" of Millers Capital Insurance Company (Millers Capital) (Harrisburg, PA). The outlook for both ratings is stable.
These rating actions reflect Millers Capital's solid risk-adjusted capitalization, improved profitability and more favorable loss reserve development trends that have emerged in recent years. These improvements have been driven by corrective actions implemented by management aimed towards improving underwriting profitability and addressing the variability in and adequacy of loss reserves.
These positive rating factors are partially offset by the magnitude of adverse loss reserve development reported on older accident years and an elevated expense structure. Although mitigated through a comprehensive reinsurance program, the company remains susceptible to weather-related losses due to its concentration in the mid-Atlantic states.
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.