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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 12, 2014 08:25 AM (EDT)
A.M. Best has revised the outlook to positive from stable and affirmed the financial strength rating (FSR) of A- (Excellent) and the issuer credit ratings (ICR) of "a-" of Everett Cash Mutual Insurance Company (Everett Cash Mutual) and 1st Choice Auto Insurance Company, Inc., who are members of ECM Insurance Group.
In addition, A.M. Best has revised the outlook to positive from stable and affirmed the ICR of "bbb" of Ever-Greene Mutual Insurance Company (Ever-Greene), an affiliate of Everett Cash Mutual. A.M. Best has also affirmed Ever-Greene's FSR of B++ (Good). The outlook for the FSR is stable. All companies are domiciled in Everett, PA.
The positive outlook of the group's members is reflective of the trend of strong risk-adjusted capitalization and solid underwriting and operating performance over the past several years. The group of companies has successfully operated in the niche market of farm owners/small commercial and ancillary products for many years. In addition, the positive outlook reflects the expectation that underwriting performance and risk- adjusted capitalization will continue to trend favorably. These positive rating factors are partially offset by the group's limited geographic spread of risk that leaves it susceptible to weather-related losses. However, the group continues to maintain a comprehensive reinsurance program in an effort to mitigate the impact of weather-related losses on its profitability and capitalization.
The positive outlook of Ever-Greene is indicative of its modest underwriting leverage, profitable operating performance, favorable risk-adjusted capitalization and affiliation with the group. Partially offsetting the positive factors is Ever-Greene's limited business profile.
Factors that may lead to further positive rating actions include the production of consistently favorable earnings while maintaining strong risk-adjusted capitalization.
Factors that may lead to negative rating actions include deterioration in the group's operating performance, leading to a substantial decline in 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. 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.