A.M. Best Downgrades Ratings of Casco Indemnity Company

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has downgraded the financial strength rating to B+ (Good) from B++ (Good) and issuer credit ratings to “bbb-” from “bbb” of Casco Indemnity Company (Casco) (Saco, ME). The outlook has been revised to negative from stable.

The downgrade recognizes Casco’s ownership by N.E. Corporation (Maine), which is majority owned by vulnerably rated Hingham Mutual Fire Insurance Company and Danbury Insurance Company, which together form The Hingham Group. Unless otherwise specified, all companies are domiciled in Hingham, MA.

The ratings also reflect Casco’s strong, stand alone capitalization, local market expertise and strong agency relations that are offset by recently unfavorable operating results and a geographic concentration of business in New England. The negative outlook reflects the trend of unfavorable operating performance and potential for further declines in risk-adjusted capitalization.

Casco is primarily engaged in writing private passenger automobile insurance products in New England.

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.

A.M. Best
Analysts:
David Fidecaro, 908-439-2200, ext. 5420
[email protected]
Rick Decker, 908-439-2200, ext. 5423
[email protected]
or
Public Relations:
Jim Peavy, 908-439-2200, ext. 5644
[email protected]
Rachelle Morrow, 908-439-2200, ext. 5378
[email protected]

Source: A.M. Best Co.