A.M. Best Downgrades Ratings of West Virginia National Auto Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has downgraded the financial strength rating to B (Fair) from B+ (Good) and issuer credit rating to “bb” from “bbb-” of West Virginia National Auto Insurance Company (West Virginia National Auto) (Morgantown, WV). The outlook for both ratings is stable.

The downgrades reflect West Virginia National Auto’s declining capitalization trend driven by its recent and projected growth in premium volume and associated liabilities. As a result, the company faces additional risks in the pricing, claims and reserving associated with its new business expansion in Virginia amid competitive market conditions. Also, the company’s earnings in recent years have been dampened by consistently unprofitable underwriting results and expense issues.

These negative rating factors are partially offset by West Virginia National Auto’s fair capitalization, generally profitable operating results and management’s local market knowledge specializing in non-standard automobile risks. A.M. Best will continue to monitor the company’s operating performance and overall capitalization to ensure these factors remain within A.M. Best’s expectations.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies” and “Understanding BCAR for Property/Casualty Insurers.” Methodologies 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.

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A.M. Best Co.
Maurice Thomas, 908-439-2200, ext. 5794
Senior Financial Analyst
[email protected]
or
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
[email protected]
or
Joseph Burtone, 908-439-2200, ext. 5125
Assistant Vice President
[email protected]
or
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
[email protected]

Source: A.M. Best Co.