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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 16, 2014 01:06 PM (EST)
A.M. Best has revised the outlook for the issuer credit rating (ICR) to positive from stable and affirmed the ICR of "bbb" for Wayne Mutual Insurance Company (Wayne) (Wooster, OH). A.M. Best has affirmed the financial strength rating (FSR) of B++ (Good) for Wayne. The outlook for the FSR remains stable.
The ICR's positive outlook reflects the improving risk-adjusted capitalization and trend of better than average underwriting and operating performance on both an absolute and comparative basis. Wayne's successful strategy over several years has included the profitable integration of Farm Mutuals in their operating territory, which led to expanded business development opportunities in its rural Ohio marketplace. The positive outlook further reflects the expectation that underwriting performance and risk-adjusted capitalization will continue to trend favorably. These positive rating factors are partially offset by the company's limited geographic spread of risk that subjects its underwriting results to losses from weather-related events, competition and regulatory actions. However, a comprehensive reinsurance program is maintained that is designed to mitigate the impact of weather-related losses on its profitability and capitalization.
Factors that may lead to further positive rating actions include sustained favorable operating trends as reported in recent years, and continued growth in the company's risk-adjusted capitalization.
Factors that may lead to negative rating actions include sudden and material deterioration in operating performance, leading to a substantial decline in capitalization.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
This press release relates to rating(s) 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 visit A.M. Best's Ratings & Criteria Center.
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.