MAY 09, 2016 03:09 PM (EDT)
A.M. Best Upgrades Ratings of Alabama Municipal Insurance Corporation
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FOR IMMEDIATE RELEASE
OLDWICK - MAY 09, 2016 03:09 PM (EDT)
A.M. Best has upgraded the financial strength rating to A- (Excellent) from B++ (Good) and the issuer credit rating to “a-” from “bbb+” of Alabama Municipal Insurance Corporation (AMIC) (Montgomery, AL). The outlook for each rating has been revised to stable from positive.
The ratings upgrade reflects AMIC’s improved risk-adjusted capitalization, its favorable operating results and low underwriting leverage. AMIC’s five-year average pre-tax and total returns on revenue and equity compare favorably to the commercial casualty composite. These results are primarily due to company’s consistent net underwriting income and steady stream of investment income over the past five years. In addition, the company’s combined and operating ratios have outperformed the composite on a five-year basis. The profits from these operations have resulted in organic surplus growth, which, in turn, reduced underwriting leverage ratios and increased overall risk-adjusted capitalization.
These positive rating factors are partially offset by AMIC’s geographic concentration of risk. As a single state writer, AMIC remains exposed to catastrophic event risk, as well as regulatory, economic and judicial issues.
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 see A.M. Best’s Recent Rating Activity web page.
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