Best’s News & Research Service - August 13, 2021 12:23 PM (EDT)
AM Best Upgrades Credit Ratings of Members of Fire Districts Insurance Group
- August 13, 2021 12:23 PM (EDT)
Oldwick //BestWire// - AM Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Ratings to “a-” (Excellent) from “bbb+” (Good) for the members of Fire Districts Insurance Group (FDIG). FDIG consists of Fire Districts of New York Mutual Insurance Company, Inc. and its wholly owned subsidiaries, FDM Preferred Insurance Company, Inc. and Fire Districts Insurance Company, Inc. (all domiciled in Pearl River, NY). The outlook of the Credit Ratings (ratings) is stable.
The ratings reflect FDIG’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
The upgrades reflect a revision to FDIG’s balance sheet assessment, which, over the years, has been the beneficiary of strong cash flows and better-than-average capital growth. The rating actions also reflect the group’s reduced reliance on reinsurance, consistently favorable prior-year reserve development and a steady improvement in the group’s overall risk-adjusted capitalization.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.