Best’s News & Research Service - September 19, 2017 03:19 PM (EDT)
A.M. Best Revises Outlooks to Positive for Wayne Cooperative Insurance Company
- September 19, 2017 03:19 PM (EDT)
Oldwick //BestWire// - A.M. Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” of Wayne Cooperative Insurance Company (Wayne Coop) (Clyde, NY).
The revised outlooks reflect Wayne Coop’s improved underwriting and operating performance in recent years, following management’s strategic initiatives to improve overall profitability.
The rating affirmations reflect Wayne Coop’s strong risk-adjusted capitalization, which is reflective of favorable loss reserving trends and a high quality investment portfolio. The ratings also consider Wayne Coop’s long-standing market presence as a cooperative insurer in upstate New York. These positive rating factors are partially offset by the company’s limited business profile as a single-state writer in New York, which exposes results to severe weather-related events and to regulatory and judicial challenges. However, the company maintains a comprehensive reinsurance program to mitigate such risks. Additionally, Wayne Coop continues to have an elevated expense ratio, driven mainly by the commission expense ratio, which marginally compresses underwriting results.
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