Best’s News & Research Service - August 02, 2017 03:09 PM (EDT)
A.M. Best Upgrades Credit Ratings of Forestry Mutual Insurance Company
- August 02, 2017 03:09 PM (EDT)
Oldwick //BestWire// - A.M. Best has upgraded the Financial Strength Rating to B++ (Good) from B+ (Good) and the Long-Term Issuer Credit Rating to “bbb” from “bbb-” of Forestry Mutual Insurance Company (FMIC) (Raleigh, NC). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.
The ratings reflect ongoing supportive capitalization, meaningful progress and improvements in underwriting and operating results and effective loss-control practices. FMIC benefits from geographic diversification by entering markets in neighboring states, as well as the initiatives taken to restructure FMIC’s reinsurance program to reduce net loss ratio volatility. The company continues be proactive and a leader in the logging industry in loss-control training and non-renewals on unprofitable accounts, implementing a zero-tolerance policy for failure to comply with safety requirements.
Positive rating action could occur with strong operating performance that compares favorably with the industry in the near term and continued stable reserve development. Negative rating action could occur if there is a material decline in operating performance or if capitalization falls substantially short of A.M. Best expectations.
This press release relates to Credit Ratings 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 see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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