JUNE 05, 2008 12:00 AM (EDT)
A.M. Best Affirms Ratings of Mercer Insurance Group and Its Members
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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JUNE 05, 2008 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit ratings (ICR) of "a" of Mercer Insurance Group (Mercer) (Pennington, NJ). The ratings apply to the following four inter-company reinsurance pool members: Mercer Insurance Company (Lock Haven, PA), Mercer Insurance Company of New Jersey, Inc. (Pennington, NJ), Franklin Insurance Company (Lock Haven, PA) and Financial Pacific Insurance Company (Rocklin, CA). The outlook for these ratings is stable. Concurrently, A.M. Best has assigned an ICR of "bbb" to Mercer Insurance Group, Inc.[NASDAQ: MIGP] (Lock Haven, PA). The outlook assigned to the ICR is stable.
The ratings reflect Mercer's excellent capitalization, solid operating performance driven by low loss ratios and conservative risk management approach to underwriting and investment risk.
These positive rating factors are partially offset by Mercer's higher expense structure, driven by its conservative underwriting approach, the risks associated with its California building contractor's book of business (construction defect) and somewhat volatile accident year reserve development.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.