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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - APRIL 06, 2010 01:30 PM (EDT)
A.M. Best Co. has upgraded the financial strength ratings (FSR) to A- (Excellent) from B++ (Good) and issuer credit ratings (ICR) to "a-" from "bbb+" of ECM Insurance Group (Group), its member, Everett Cash Mutual Insurance Company (Everett Cash Mutual) and 1st Choice Auto Insurance Company, Inc. (1st Choice Auto), the direct subsidiary of Everett Cash Mutual. The outlook for these ratings is being revised to stable from positive.
In addition, A.M. Best has affirmed the FSR of B++ (Good) and ICR of "bbb" of Ever-Greene Mutual Insurance Company (Ever-Greene), an affiliate of Everett Cash Mutual. The outlook for these two ratings is stable. All companies are domiciled in Everett, PA.
The rating actions on the Group reflect its excellent risk-adjusted capitalization, solid underwriting and operating performance in its niche market of farm owners/small commercial coverages and its conservative investment portfolio. The rating upgrades also reflect A.M. Best's expectation that underwriting performance and risk-adjusted capitalization will continue to trend favorably. These positive rating factors are somewhat offset by the Group's current tight geographic concentration of risk.
The ratings of 1st Choice Auto recognize its continued underwriting profitability and solid risk-adjusted capitalization as a strategic subsidiary of Everett Cash Mutual. Partially offsetting these positive rating factors are 1st Choice Auto's limited geographic concentration of risk and limited product offering.
The ratings of Ever-Greene are indicative of its modest underwriting leverage, profitable operating performance, favorable risk-adjusted capitalization and affiliation with the Group, and are somewhat offset by Ever-Greene's limited business profile.
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.