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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MARCH 20, 2009 12:00 AM (EDT)
A.M. Best Co. has upgraded the issuer credit rating (ICR) to "bbb+" from "bbb" and affirmed the financial strength rating of B++ (Good) of Central Co-Operative Insurance Company (Central Co-Op) (Baldwinsville, NY). The outlook for both ratings is stable.
The upgrading of the ICR of Central Co-Op reflects its trend of positive operating performance, favorable risk-adjusted capitalization and long-standing local market presence in its operating territory. Central Co-Op's capital position is the outcome of several years of positive underwriting results derived from adhering to tightened underwriting guidelines during a period of competitive market conditions, coupled with a portfolio of invested assets that generated a steady stream of investment income. As a result of management's successful implementation of its strategies, including those involving changing market conditions, significant surplus growth has been achieved.
These rating factors are partially offset by Central Co-Op's geographic concentration of risk as a property writer in north central New York, making it susceptible to frequent and severe weather-related events and competitive market conditions.
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, which 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.