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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JUNE 09, 2010 12:00 AM (EDT)
A.M. Best Co. has assigned a financial strength rating (FSR) of A- (Excellent) and an issuer credit rating (ICR) of "a-" to Plymouth Rock Assurance Casualty Company (PRACC). The outlook assigned to both ratings is negative. PRACC was established in mid-2009 and is included in the recently formed pooling agreement as part of Plymouth Rock Assurance Group (PRAG). PRAG has been in business for over 25 years.
Concurrently, A.M. Best has affirmed the FSR of A- (Excellent) and ICRs of "a-" of PRAG and its three pool members, Plymouth Rock Assurance Casualty Company, Pilgrim Insurance Company (Pilgrim) and PRAG's lead company, Plymouth Rock Assurance Corporation. An affiliate company, Mt. Washington Assurance Corporation (Concord, NH) operates under a 100% reinsurance agreement with Plymouth Rock Assurance Corporation. The outlook for these ratings is negative. All companies are domiciled in Boston, MA, unless otherwise specified.
Previously, Pilgrim was separately rated and was added to the pool effective January 1, 2010. Pilgrim's FSR of A- (Excellent) and ICR of "a-" have been affirmed, and the outlook revised to negative from stable, which is consistent with the other pool members.
PRAG's positive rating factors include its adequate risk-adjusted capitalization, trend of positive pre-tax operating income and extensive local market knowledge. These factors are derived from management's underwriting discipline and long-standing presence in the Massachusetts private passenger automobile marketplace.
The group's negative outlook recognizes several recent years of underwriting losses, elevated underwriting and unaffiliated investment leverage as well as the concentration of business in the increasingly competitive private passenger automobile marketplace in Massachusetts.
For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit Best's Ratings & Analysis.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at Best's Credit Rating Methodology.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.