Best’s News & Research Service - November 02, 2021 11:14 AM (EDT)
AM Best Revises Outlooks to Stable for Quincy Mutual Group Members
- November 02, 2021 11:14 AM (EDT)
Oldwick //BestWire// - AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings of “aa-” (Superior) for the members of Quincy Mutual Group. The group includes the lead company, Quincy Mutual Fire Insurance Company (Quincy Mutual), along with New England Mutual Insurance Company (NEMIC) and Patrons Oxford Insurance Company (Patrons). Quincy Mutual and NEMIC are domiciled in Quincy, MA, while Patrons is domiciled in Portland, ME.
The group’s Credit Ratings (ratings) reflect its balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The revised outlooks to stable from negative reflect the improvement in the group’s underwriting and operating performance in recent years that has resulted in metrics increasing to a level more in line with strongly assessed rating units in the private passenger standard auto and homeowners composite. Additionally, the group has shifted its assumed reinsurance business in recent years to a more balanced allocation between property catastrophe, casualty and financial, which has contributed to improved results. Furthermore, the group has implemented numerous strategic initiatives to improve underwriting and operating performance, including sophisticated pricing models with more granular rates, as well as numerous rate adjustments.
The group’s strongest balance sheet strength is supported by its risk-adjusted capitalization being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), favorable loss reserve development, strategic reduction in common stock leverage and underwriting leverage that is considerably below the composite. The group’s neutral business profile reflects historically profitable diversification achieved through the direct and assumed channels, as well as predictive analytics embedded within the decision-making and pricing processes. AM Best considers ERM as appropriate through utilization of a sophisticated capital model to help guide risk tolerances.
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.