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FOR IMMEDIATE RELEASE
OLDWICK - MAY 09, 2017 08:55 AM (EDT)
A.M. Best has upgraded the Financial Strength Rating to B++ (Good) from B+ (Good) and the Long-Term Issuer Credit Rating to “bbb” from “bbb-” of Mt. Morris Mutual Insurance Company (Mt. Morris) (Coloma, WI). The outlooks of these Credit Ratings (ratings) have been revised to stable from positive.
The rating upgrades reflect Mt. Morris’ strong level of risk-adjusted capitalization and solid and improving underwriting and operating performance, largely due to several initiatives management has undertaken to improve underwriting results, such as rate level adjustments, exposure mitigation efforts, refined underwriting techniques and agency management changes. Additionally, the company’s ratings are based on a prudent investment portfolio, solid liquidity measures that are enhanced with positive underwriting and operating cash flows and a comprehensive reinsurance program with strong partners.
Offsetting rating factors include Mt. Morris operating predominantly in Wisconsin, which creates geographic and regulatory risks. Furthermore, the company maintains elevated common stock leverage. Although investment performance has been favorable, it carries the risk that policyholders’ surplus is more exposed to fluctuations in equity value.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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