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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JUNE 18, 2012 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit ratings of “a-” of the members of Plymouth Rock Assurance Group (PRAG), which includes intercompany pool members, Plymouth Rock Assurance Corp. (PRAC) and Pilgrim Insurance Company, as well as the operations of affiliate, Mt. Washington Assurance Corporation (Concord, NH), which is fully reinsured via a quota share arrangement. The outlook for all ratings is stable.
Concurrently, A.M. Best has withdrawn the FSR of A- (Excellent) and ICR of “a-” of Plymouth Rock Assurance Casualty Company (PRACC) as a result of its removal from the PRAG pooling arrangement. PRACC was subsequently sold to affiliate, Bunker Hill Insurance Company, and renamed Bunker Hill Insurance Casualty Company. All companies are domiciled in Boston, MA, except where specified.
The ratings of PRAG reflect its solid risk-adjusted capitalization, generally profitable operating performance, positive loss reserve development and reduced dependence on reinsurance. The group continues to enhance its pricing segmentation on risks that meet its underwriting requirements and implement claims handling process improvements that enhance claim severity.
PRAG’s operating results may be pressured by its elevated underwriting and investment leverage, geographic concentration, increased competition and the uncertainty regarding the future of Massachusetts’ insurance regulation.
Positive future rating actions would be contingent upon PRAG establishing a trend of underwriting profitability along with strong risk-adjusted capitalization. Conversely, negative rating actions are possible if operating losses were to lead to a decline in the company’s risk-adjusted capitalization.
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. Key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies” and “Understanding BCAR for Property/Casualty Insurers.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source.