Best’s News & Research Service - July 09, 2015 10:37 AM (EDT)
A.M. Best Upgrades and Removes From Under Review Ratings of Florists' Mutual Insurance Company and Florists' Insurance Company
Oldwick //BestWire// - A.M. Best has upgraded the financial strength ratings to A+ (Superior) from B+ (Good) and the issuer credit rating to "aa-" from "bbb-" of Florists' Mutual Insurance Company (Florists' Mutual) and its wholly owned and reinsured subsidiary Florists' Insurance Company, collectively referred to as Florists'. The ratings have been removed from under review with positive implications and assigned a stable outlook. Both companies are domiciled in Edwardsville, IL.
The rating upgrades reflect the execution of an inter-company pooling agreement, effective July 1, 2015, under which Florists' Mutual will assume a 1% participation in a pool led by Sentry Insurance a Mutual Company (Sentry). This follows the May 2015 affiliation agreement between Florists' Mutual and Sentry under which Florists' is expected to benefit from the shared expertise, services and financial support of Sentry. The ratings of Sentry have been extended to Florists' Mutual as a result of its inclusion in the pooling agreement and to Florists' Insurance Company as a result of its reinsurance agreement with Florists' Mutual.
A.M. Best does not anticipate changes in the ratings of Sentry in the near term; however, negative rating action may occur if Sentry's improved underwriting results do not continue or if its risk-adjusted capitalization deteriorates.
This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best's Ratings & Criteria Center.
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