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FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 23, 2017 03:19 PM (EST)
A.M. Best has upgraded the Financial Strength Rating to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Rating to “a-” from “bbb+” of Wayne Mutual Insurance Company (Wayne) (Wooster, OH). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.
The rating upgrades reflect the sustained improvement in Wayne’s underwriting and operating results over the past several years, which strengthened its risk-adjusted capitalization. The ratings further acknowledge management’s improved enterprise risk management capabilities in recent years and the expectation that the company’s favorable operating results will remain strong and continue to strengthen the capital position.
These positive rating factors are partially offset by Wayne’s geographic concentration of risk. As a single state writer in Ohio, the company is exposed to severe weather-related events, as well as changes in the judicial, regulatory and economic environment. However, the company maintains a comprehensive reinsurance program that reduces the impact from a catastrophic event to a manageable level. While the company has reported strong operating performance, as reflected by Wayne’s favorable five-year average pure loss ratio that outperforms the composite, it does maintain an elevated expense ratio relative to the composite.
Factors that may lead to further positive rating action include sustained favorable operating results as reported in recent years with continued growth in risk-adjusted capitalization. Factors that may lead to negative rating action include a sudden and material deterioration in operating results that lead to a substantial decline in capitalization.
This press release relates to Credit Ratings 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 see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings.
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