AM Best Information Services

MARCH 25, 2005 12:00 AM (EST)

A.M. Best Affirms Ratings of Amica Mutual Group and Amica Life Insurance Company

William Decker/Stefan Holzberger - P/C
(908) 439-2200, ext. 5423/5699

Colleene Parodi/Steve Irwin - L/H
(908) 439-2200, ext. 5095/5454
Public Relations
Jim Peavy
(908) 439-2200, ext. 5644

Rachelle Striegel
(908) 439-2200, ext. 5378


OLDWICK, N.J. - MARCH 25, 2005 12:00 AM (EST)
A.M. Best Co. has affirmed the financial strength rating of A++ (Superior) of Amica Mutual Group (Amica). This rating applies to the lead company, Amica Mutual Insurance Company and its affiliate, Amica Lloyd's of Texas (Sugar Land, TX). Additionally, A.M. Best has affirmed the financial strength rating of A+ (Superior) of Amica Life Insurance Company (Amica Life). All companies are located in Lincoln, RI, except where specified. All ratings have a stable outlook.

The rating of Amica reflects its superior capitalization, solid operating performance and substantial geographic spread of risk. These strengths are derived from management's sound underwriting fundamentals and low cost distribution channels. Amica's operating performance, although favorable, is reduced by the return of capital to its policyholders in the form of dividends. This annual dividend is part of Amica's rate structure and enables it to maintain high retention levels. Furthermore, the group maintains modest underwriting leverage and follows conservative loss reserving practices.

Amica's strong operating fundamentals and multi-line synergies carry over into its life operation, Amica Life, which benefits from the group's capital strength, distribution network and growing customer base. The rating of Amica Life also reflects its own strong stand-alone capitalization, favorable operating results and recent growth in new life insurance sales.

Over the near term, A.M. Best expects Amica to sustain its strong capitalization and favorable profitability levels through its adherence to conservative operating fundamentals and exceptional customer service standards.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.

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A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source.

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