OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best Co. has affirmed the financial strength rating of A-
(Excellent) and issuer credit ratings of “a-” of the members of Plymouth
Rock Assurance Group (PRAG), which includes intercompany pool
members, Plymouth Rock Assurance Corp. (PRAC) and Pilgrim
Insurance Company, as well as the operations of affiliate, Mt.
Washington Assurance Corporation (Concord, NH), which is fully
reinsured via a quota share arrangement. The outlook for all ratings is
Concurrently, A.M. Best has withdrawn the FSR of A- (Excellent) and ICR
of “a-” of Plymouth Rock Assurance Casualty Company(PRACC) as a
result ofits removal from the PRAG pooling arrangement. PRACC
was subsequently sold to affiliate, Bunker Hill Insurance Company,
and renamed Bunker Hill Insurance Casualty Company. All companies
are domiciled in Boston, MA, except where specified.
The ratings of PRAG reflect its solid risk-adjusted capitalization,
generally profitable operating performance, positive loss reserve
development and reduced dependence on reinsurance. The group continues
to enhance its pricing segmentation on risks that meet its underwriting
requirements and implement claims handling process improvements that
enhance claim severity.
PRAG’s operating results may be pressured by its elevated underwriting
and investment leverage, geographic concentration, increased competition
and the uncertainty regarding the future of Massachusetts’ insurance
Positive future rating actions would be contingent upon PRAG
establishing a trend of underwriting profitability along with strong
risk-adjusted capitalization. Conversely, negative rating actions are
possible if operating losses were to lead to a decline in the company’s
The methodology used in determining these ratings is Best’s Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best’s rating process and contains the different rating criteria
employed in the rating process. Key criteria utilized include: “Risk
Management and the Rating Process for Insurance Companies” and
“Understanding BCAR for Property/Casualty Insurers.” Best’s Credit
Rating Methodology can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world’s oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS
A.M. Best Company, Inc.Raymond Thomson, ARMSenior
Financial Analyst908-439-2200, ext. email@example.comGreg
WilliamsManaging Senior Financial Analyst908-439-2200,
MorrowSenior Manager, Public Relations908-439-2200,
PeavyAssistant Vice President, Public Relations908-439-2200,
Source: A.M. Best Company, Inc.