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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MAY 02, 2008 12:00 AM (EDT)
A.M. Best Co. has upgraded the financial strength rating to A- (Excellent) from B++ (Good) and issuer credit rating to "a-" from "bbb+" of Rockford Mutual Insurance Company (Rockford) (Rockford, IL). The outlook for both ratings is stable.
The ratings reflect Rockford's strong capitalization and favorable operating performance over several years. The ratings also acknowledge the implementation of re-underwriting initiatives, reduced property exposure and rate adjustments, which contributed to significant improvements in operating profitability and growth in policyholders' surplus since 2002. The ratings additionally recognize the enhancements made on Rockford's assumed business program through the purchase of extensive reinsurance protection that further supported profitability.
Partially offsetting these positive rating factors is Rockford's reinsurance dependence and geographic concentration in the Midwest, which exposes it to frequent weather-related events and potential changes in regulatory and judicial environments.
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 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.