AM Best Revises Outlooks to Positive for Broome Co-operative Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Broome Co-operative Insurance Company (Broome) (Vestal, NY).

The Credit Ratings (ratings) reflect Broome’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM),

The outlook revisions to positive reflect Broome’s sustained profitability over the past five-plus years, which resulted in underwriting and operating performance metrics that outperformed AM Best’s personal property composite. The company’s profitable results have benefited from management’s underwriting initiatives, including stricter underwriting guidelines, technology advances, territorial and product expansion, expense management efforts and improved reinsurance program. The positive outlooks also reflect expectations that volatility in Broome’s key operating metrics will remain low to moderate, inclusive of the impacts from weather-related events and fire losses.

Broome’s balance sheet strength is supported by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), conservative underwriting and loss-reserve leverage measures, prudent investment portfolio and comprehensive reinsurance program. Broome’s limited business profile reflects its geographic concentration in New York, which exposes results to localized weather events, as well as potential judicial and regulatory challenges. AM Best considers Broome’s ERM program to be appropriate for its size and scope of operations.

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, Bests 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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Brian O’Larte

Director

+1 908 439 2200, ext. 5138

brian.o'larte@ambest.com

Christopher Sharkey
Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Richard Attanasio
Senior Director

+1 908 439 2200, ext. 5432

richard.attanasio@ambest.com

Jim Peavy
Director, Communications

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

Source: AM Best