OLDWICK, N.J.--(BUSINESS WIRE)--
A.M. Best Co. has revised the outlook to negative from stable and
affirmed the financial strength rating of A- (Excellent) and issuer
credit rating of “a-” of Wisconsin Mutual InsuranceCompany
(WMIC) ( Madison, WI).
The negative outlook reflects WMIC’s trend of poor underwriting
performance from increased frequency and severity of weather-relate
events and from a large claims settlement, which resulted in a loss of
surplus in some years. The outlook also considers the impact on the
future underwriting performance of WMIC due to an increase in the amount
of catastrophe risk the company retains.
The ratings acknowledge WMIC’s solid capitalization, established market
presence in Wisconsin and favorable underwriting expense ratio. WMIC’s
solid risk-adjusted capital position is attributed to its modest
underwriting leverage and relatively conservative investment portfolio.
WMIC’s operating performance was impacted by losses from severe winter
weather and frequent hail storms over the past two years. Nevertheless,
underwriting profitability continued to be management’s focus driven by
closely managed growth initiatives, strict underwriting guidelines and
rate modifications, while maintaining its competitive expense structure.
Future negative rating and/or outlook revisions may occur if there is a
continuation of negative operating results, which cause a further
decline in WMIC policyholders’ surplus over the intermediate term.
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”; “Understanding BCAR for Property/Casualty Insurers”; and
“Catastrophe Analysis in A.M. Best Ratings.” 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 Co.Kevin DorseySenior Financial
Analyst(908) 439-2200, ext. email@example.comGary
DavisAssistant Vice President(908) 439-2200,
MorrowSenior Manager, Public Relations(908)
439-2200, ext. firstname.lastname@example.orgJim
PeavyAssistant Vice President, Public Relations(908)
439-2200, ext. email@example.com
Source: A.M. Best Co.