A.M. Best Affirms Ratings of Bunker Hill Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has affirmed the financial strength rating (FSR) of B++ (Good) and issuer credit rating (ICR) of “bbb” of Bunker Hill Insurance Company (BHIC). The outlook for both ratings is stable.

Concurrently, A.M. Best has assigned an FSR of B++ (Good) and an ICR of “bbb” to Bunker Hill Insurance Casualty Company (BHICC), the newly acquired subsidiary of BHIC. The outlook assigned to these ratings is stable. Via an intercompany pooling agreement, these companies are collectively known as the Bunker Hill Insurance Group(Bunker Hill). All companies are domiciled in Boston, MA.

The ratings of Bunker Hill reflect its adequate risk-adjusted capitalization, generally favorable operating performance and the specified financial support provided by its ultimate parent, The Plymouth Rock Company Incorporated, in the form of an ongoing capital support agreement. In addition, the ratings recognize the benefits derived from management’s extensive knowledge and experience in its marketing territories as well as its strong agency relationships. The newly acquired BHICC will provide Bunker Hill with rating flexibility and help to further diversify the group’s spread of risk.

Partially offsetting these positive rating factors are Bunker Hill’s sole focus on property risk, dependence on reinsurance and significant exposure to New England weather losses as demonstrated in 2011.

Positive future rating movement would be contingent upon Bunker Hill returning to a trend of underwriting profitability while showing an improving trend in risk-adjusted capitalization. Conversely, negative rating actions are possible if operating losses were to lead to a decline in risk-adjusted capitalization.

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 RESERVED.

A.M. Best Company
Raymond Thomson, ARM, 908-439-2200, ext. 5621
Senior Financial Analyst
raymond.thomson@ambest.com
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow@ambest.com
or
Greg Williams, 908-439-2200, ext. 5815
Managing Senior Financial Analyst
greg.williams@ambest.com
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

Source: A.M. Best Company