AM Best Revises Issuer Credit Rating Outlook to Stable for Preferred Mutual Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has revised the outlook to stable from negative for the Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICR of “a+” (Excellent) of Preferred Mutual Insurance Company (Preferred Mutual) (New Berlin, NY). The outlook of the FSR is stable.

The Credit Ratings (ratings) reflect Preferred Mutual’s balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

The revised Long-Term ICR outlook to stable is a result of the recent improvement in the company’s balance sheet strength, including stabilizing loss reserving trends due to consecutive years of favorable reserve development and surplus growth. AM Best’s balance sheet strength assessment of strongest is supported by Preferred Mutual’s risk-adjusted capitalization also being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), along with the company’s relatively conservative investment portfolio, solid liquidity measures and comprehensive reinsurance program. Preferred Mutual also had generally positive growth in policyholder’s surplus over the long term, which is partially offset by some limitation in its financial flexibility.

Preferred Mutual’s adequate operating performance is supported by solid underwriting results and consistent investment earnings, with the past two years reflecting an improvement in pure loss ratio trends.

Preferred Mutual’s neutral business profile assessment is driven largely by its solid regional niche market role with a broad product offering.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Nicholas Matukaitis
Financial Analyst

+1 908 439 2200, ext. 5486

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Brian O’Larte

Director

+1 908 439 2200, ext. 5138

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Christopher Sharkey
Manager, Public Relations

+1 908 439 2200, ext. 5159

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Jeff Mango
Managing Director,

Strategy Communications

+1 908 439 2200, ext. 5204

[email protected]

Source: AM Best