A.M. Best Upgrades Ratings of Countryway Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has upgraded the financial strength rating to A- (Excellent) from B++ (Good) and the issuer credit rating to “a-” from “bbb+” of Countryway Insurance Company(Countryway) (Syracuse, NY). The ratings have been removed from under review with developing implications and assigned a stable outlook.

The upgrading of the ratings is a result of the acquisition of Countryway by Virginia Farm Bureau Mutual Insurance Company (VA Farm Bureau Mutual) on May 11, 2011, and the implementation of a loss portfolio transfer agreement and a 100% net quota share reinsurance agreement. The agreements, which are effective May 1, 2011, transfer and cede all of Countryway’s net underwriting risk to VA Farm Bureau Mutual.

VA Farm Bureau Mutual is the lead company in the Virginia Farm Bureau Group(the group). The acquisition of Countryway for approximately $24.6 million provides the group with additional geographic diversification through an alternate distribution channel. Prior to the acquisition, the group wrote only in Virginia through exclusive agents, whereas Countryway operates primarily in New England, New York, New Jersey, Pennsylvania, Kentucky and Virginia through independent agents.

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: “Understanding BCAR for Property/Casualty Insurers” and “Rating Members of Insurance Groups.” 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.

Copyright © 2011 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.

A.M. Best Co.Charles M. HuberSenior Financial Analyst
908-439-2200, ext. 5122
charles.huber@ambest.com
orJoseph BurtoneAssistant Vice President
908-439-2200, ext. 5125
joseph.burtone@ambest.com
orRachelle MorrowSenior Manager, Public Relations
908-439-2200, ext. 5378
rachelle.morrow@ambest.com
orJim PeavyAssistant Vice President, Public Relations
908-439-2200, ext. 5644
james.peavy@ambest.com

Source: A.M. Best Co.