Best’s News & Research Service - January 07, 2016 10:44 AM (EST)
A.M. Best Upgrades Issuer Credit Rating of Wayne Mutual Insurance Company
Oldwick //BestWire// - A.M. Best has upgraded the issuer credit rating (ICR) to “bbb+” from “bbb” and affirmed the financial strength rating (FSR) of B++ (Good) of Wayne Mutual Insurance Company (Wayne) (Wooster, OH). The outlook for the FSR has been revised to positive from stable, while the outlook for the ICR remains positive. The positive outlooks reflect Wayne’s strengthened capital position and the expectation that favorable operating performance will be sustained, thereby enabling the company to continue to grow its surplus.
The rating actions reflect Wayne’s trend of improving risk-adjusted capitalization and favorable operating performance over several consecutive years. Over the past 10-year period, Wayne’s successful business strategy has included the business integration of two mutual protectives within its operating territory, which has led to business growth in its rural Ohio marketplace. The rating actions further reflect the company’s ongoing underwriting and pricing discipline that has driven better than average loss ratios, steady investment income from a conservative investment portfolio and management’s effective enterprise risk management capabilities, which include a comprehensive reinsurance program.
These positive rating factors are partially offset by Wayne’s ongoing exposure to localized weather-related losses despite a greater spread of risk throughout the state.
Factors that may lead to further positive rating action include sustained favorable underwriting and operating results as reported in recent years with continued growth in risk-adjusted capitalization.
Factors that may lead to negative rating actions include a sudden and material deterioration in operating performance, leading to a substantial decline in risk-adjusted capitalization.
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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