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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 13, 2022 11:09 AM (EST)
AM Best has revised the outlooks to stable from positive and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Mutual of Enumclaw Insurance Company and Enumclaw Property & Casualty Insurance Company, which comprise Enumclaw Insurance Group (Enumclaw). The company is headquartered in Enumclaw, Washington.
These Credit Ratings (ratings) reflect Enumclaw’s balance sheet strength, which AM Best assesses as very strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The revision in the outlooks to stable from positive reflects Enumclaw’s deterioration in underwriting performance in 2022, which has been primarily impacted by elevated loss costs, and to some extent, severe weather events. As a result, the group is expected to miss projections materially and deviate from prior year performance, further aligning with the current operating performance assessment. While corrective actions are being implemented to return to profitability, the group still faces several macroeconomic issues, which may inhibit its ability to stabilize near-term performance.
Enumclaw’s very strong balance sheet strength assessment is supported by risk- adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), and a comprehensive reinsurance program that is somewhat offset by adverse reserve development in recent years.
The neutral business profile assessment reflects the group’s long-standing market presence in the Pacific Northwest and its somewhat diverse product offering in both personal and commercial lines. AM Best considers Enumclaw’s ERM to be appropriate for the risk profile of the organization.
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.