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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MARCH 09, 2007 12:00 AM (EST)
A.M. Best Co. has upgraded the financial strength rating (FSR) to A (Excellent) from A- (Excellent) and has assigned an issuer credit rating (ICR) of "a" to Dryden Mutual Insurance Company (Dryden) (Dryden, NY). The outlook for the FSR has been revised to stable from positive, and the outlook assigned to the ICR is stable.
The ratings reflect Dryden's excellent risk-adjusted capitalization, sustained profitability, conservative leverage measures and favorable balance sheet liquidity.
These positive rating factors are somewhat offset by the company's elevated expense structure and narrow geographic spread of risk. In spite of these challenges, the ratings acknowledge Dryden's improvement in capitalization, primarily driven by internal capital generation, and moderation in premium growth in recent years. The ratings also reflect Dryden's historically solid underwriting and operating performance.
The outlook reflects A.M. Best's expectation that Dryden's excellent operating performance, conservative underwriting and generation of organic surplus growth will continue in the near to mid term.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.
Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors.