AM Best Information Services

MAY 23, 2007 12:00 AM (EDT)

A.M. Best Affirms Financial Strength Ratings of Amica Mutual Group and Amica Life; Assigns Issuer Credit Ratings to Companies

Joel Silverthorn-P/C
(908) 439-2200, ext. 5120

Louis Savarese-L/H
(908) 439-2200, ext. 5168

Public Relations
Jim Peavy
(908) 439-2200, ext. 5644

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


OLDWICK, N.J. - MAY 23, 2007 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating (FSR) of A++ (Superior) and assigned issuer credit ratings (ICR) of "aa+" to Amica Mutual Group (Amica). These ratings also apply to the lead company, Amica Mutual Insurance Company and its other affiliates, Amica Lloyd's of Texas (Sugar Land, TX) and Amica Property & Casualty Insurance Company. Additionally, A.M. Best has affirmed the FSR of A+ (Superior) and assigned an ICR of "aa-"to Amica Life Insurance Company (Amica Life). The outlook for all ratings is stable. All companies are located in Lincoln, RI, except where specified.

The affirmation of Amica's ratings reflect its outstanding capitalization, solid operating performance and well-established market position as one of the 60 largest property/casualty insurers in the United States.

These strengths are derived from management's improved underwriting fundamentals, geographic diversification strategy and low cost distribution channels. Amica's operating performance, although favorable, is reduced to marginal levels by the return of capital to its policyholders in the form of dividends. This annual dividend, however, is an integral part of Amica's rate structure, which 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 Amica Life, which benefits from the group's capital strength, distribution network and growing customer base. The ratings of Amica Life are partially based on its strategic role within Amica.

The ratings also reflect Amica Life's strong stand alone risk-adjusted capitalization and its profitable statutory operating results and continued growth in life insurance premiums as it continues its focus on further penetrating its parent's customer base.

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.

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.

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