Vermont Mutual Assigned ‘BBBpi’

A “BBBpi” FSR was assigned to Vermont Mutual Insurance Co. by S&P. The rating also applies to the company’s related reinsured pool members, Northern Security Insurance Co. and Granite Mutual Insurance Co. Key rating factors include Vermont Mutual’s very strong capitalization, marginal operating performance and volatile growth in premium revenues. Vermont Mutual writes mainly homeowners and commercial multi-peril coverages. The company is licensed in 13 states and is a member of Vermont Mutual Group. The rating action does not, however, include additional credit for implied group support.

In a separate rating action, S&P affirmed the “BBBpi” FSR on Champlain Casualty Co. of Vermont, a rating action based on a reinsurance agreement the company made with Vermont Mutual Insurance. Under the terms of the agreement, Vermont Mutual assumes 100 percent of Champlain Casualty’s business.