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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MARCH 22, 2007 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating (FSR) of B++ (Good) and assigned an issuer credit rating (ICR) of "bbb+" to Millers Capital Insurance Company (Harrisburg, PA). The outlook for the FSR has been revised to positive from stable, while the outlook assigned to the ICR is positive.
The ratings reflect the company's solid risk-adjusted capitalization and improved profitability, which is reflective of improved loss reserve development trends and corrective actions implemented by management toward increasing profitability. This is being done through the refocusing of underwriting initiatives and addressing the variability in and adequacy of loss reserves.
These positive rating factors are partially offset by the adverse loss reserve development reported on prior accident years, an elevated expense position and susceptibility to weather-related losses given the company's geographic concentration in the mid-Atlantic states, although this is mitigated through a comprehensive catastrophe reinsurance program.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.
Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors.