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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MAY 15, 2007 12:00 AM (EDT)
A.M. Best Co. has upgraded the financial strength rating (FSR) to A (Excellent) from A- (Excellent) and assigned an issuer credit rating (ICR) of "a" to Badger Mutual Insurance Company (Badger Mutual) (Milwaukee, WI). The outlook for the FSR has been revised to stable from positive, while the outlook assigned to the ICR is stable.
The rating upgrade of Badger Mutual reflects its strong risk-adjusted capitalization, favorable trend of strong operating results and long-term agency relationships.
Offsetting these positive rating factors is Badger Mutual's exposure to significant weather-related losses due to its concentration of business in the upper midwest and the competitive market conditions in its leading states.
Badger Mutual's strong risk-adjusted capital position is attributed to its low investment and credit risk as the company maintains a conservative investment portfolio and uses reinsurance to manage its catastrophe exposures. In addition, Badger Mutual generated consistent investment income, which complemented its underwriting profitability.
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.