Best’s News & Research Service - January 17, 2013 12:05 PM (EST)
A.M. Best Upgrades Issuer Credit Ratings of Wisconsin County Mutual Group Members
OLDWICK, N.J. //BestWire// - A.M. Best Co. has upgraded the issuer credit ratings (ICR) to “bbb+” from “bbb” and affirmed the financial strength rating of B++ (Good) of Wisconsin County Mutual Insurance Corporation and its fully reinsured subsidiary, Community Insurance Corporation (CIC). These companies are members of Wisconsin County Mutual Group (WCMG) and are all domiciled in Madison, WI. The outlook for all ratings remains stable.
The upgrade of the ICRs reflects WCMG’s strong risk-adjusted capitalization, expertise within the Wisconsin municipal risk management market and improved operating and underwriting performance. The ratings also reflect WCMG’s improved performance as a result of its commitment to loss control and risk management services. In addition, WCMG continues to maintain a well-established market presence among Wisconsin counties and municipalities.
Partially offsetting these positive factors are the group's elevated expense ratio, historical trends of variable underwriting results and modest business profile.
Prospectively, future positive rating actions may result if WCMG’s operating results continue to demonstrate profitable trends while maintaining solid risk-adjusted capitalization, particularly as CIC reenters the workers’ compensation market in its niche market. Conversely, if operating performance declines to unprofitable levels as demonstrated in historical periods, negative rating pressure may occur.
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”; “Understanding BCAR for Property/Casualty Insurers”; and “Rating Members of Insurance Groups.” Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.