Best’s News & Research Service - April 24, 2008 02:49 PM (EDT)
A.M. Best Upgrades Ratings of Center Mutual Insurance Company and Revises Outlook to Stable
OLDWICK, N.J. //BestWire// - A.M. Best Co. has upgraded the financial strength rating (FSR) to A- (Excellent) from B++ (Good) and issuer credit rating (ICR) to “a-” from “bbb+” of Center Mutual Insurance Company (Center Mutual) (Rugby, ND). The outlook for both ratings has been revised to stable from positive.
The ratings reflect Center Mutual’s strong capitalization and operating performance in recent years and its long-standing local market presence in North and South Dakota.
Partially offsetting these positive rating factors is the company’s geographic concentration of its personal lines book, which makes it susceptible to severe weather-related losses and regulatory changes. The rating outlook derives from Center Mutual’s consistently favorable operating performance and its capital position.
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