A.M. Best Assigns Ratings to Broome Co-operative Insurance Company

A.M. Best Co. has assigned a financial strength rating of B++ (Good) and issuer credit rating of "bbb+" to Broome Co-operative Insurance Company (Broome Co-op) (Vestal, NY). The outlook assigned to both ratings is stable.

The ratings reflect Broome Co-op's favorable level of risk-adjusted capitalization, which is attributable to its low underwriting leverage position and conservative investment portfolio. The ratings also acknowledge Broome Co-op's consistently strong operating income, favorable underwriting performance driven by lower than average losses from its seasoned book of business, and its long-standing local market presence as a property lines writer in New York.

Partially offsetting these positive rating factors are Broome Co-op's elevated expense position and geographic concentration of risk. As a company conducting business exclusively in New York, its earnings are susceptible to weather-related events and competitive market conditions. However, a comprehensive reinsurance program is maintained to mitigate the exposure to high severity events. Broome Co-op's elevated expense position is mainly driven by commission costs, technology enhancements, and more recently, increased state assessments.

For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology. 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. For more information, visit www.ambest.com.