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FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 17, 2018 03:22 PM (EST)
A.M. Best has upgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” from “bbb” and affirmed the Financial Strength Rating (FSR) of B++ (Good) of Wolverine Mutual Insurance Company (Wolverine) (Dowagiac, MI). The outlook of the Long-Term ICR has been revised to stable from positive while the outlook of the FSR remains stable.
The ratings reflect Wolverine’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. Wolverine has strengthened its capitalization in recent years, which can be attributed to improved underwriting income, resulting in surplus growth that has outpaced overall premium growth. The company’s modest investment leverage and consistently favorable loss reserve development also are factors in the more robust capitalization levels. Underwriting performance continues to improve due to re-underwriting and re-inspecting property lines, as well as more-focused efforts on fighting automobile fraud and excessive medical billing claims. In addition, the company’s leverage measures are elevated when compared with the composite; however, they are on a downward trend as a result of the continued surplus growth.
Conversely, Wolverine’s geographic concentration exposes surplus to frequent and severe weather events, which the company has experienced in recent years, as well as the judicial and regulatory environment. Most notable is automobile personal injury protection coverage, which continues to be a challenge for all companies with this exposure in Michigan. However, management’s extensive expertise contributes to the company’s profitable automobile book of business.
This press release relates to Credit Ratings that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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