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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 17, 2020 09:09 AM (EST)
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating to B++ (Good) and the Long-Term Issuer Credit Rating to “bbb+”of PEMCO Mutual Insurance Company (PEMCO) (Seattle, WA).
The Credit Ratings (ratings) reflect PEMCO’s balance sheet strength, which AM Best categorizes as very strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The revised outlooks to positive from stable for PEMCO reflect improvement in underwriting and operating performance in recent years. These improvements were driven by profitability initiatives, including agency management, rate increases and more stringent underwriting guidelines. Additionally, the loss and expense ratios now are in line with those of the private passenger home and auto composite due to PEMCO’s technology enhancements and improved performance. PEMCO’s very strong balance sheet is supported by risk-adjusted capital at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), and moderate underwriting leverage measures, somewhat offset by adverse reserve development. The neutral business profile assessment reflects its long-standing market presence in the Pacific Northwest and multichannel distribution platform. AM Best considers PEMCO’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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.