A.M. Best has upgraded the Financial Strength Rating (FSR) to A- (Excellent) from B++ (Good) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to a- from bbb for the members of Bunker Hill Insurance Group.
The outlook of the Long-Term ICR has been revised to stable from positive, while the outlook for the FSR remains stable. Concurrently, A.M. Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and Long-Term ICRs of a- of the members of Plymouth Rock Assurance Group.
The outlook of these credit ratings remains stable. The companies are operating subsidiaries of their parent holding company, The Plymouth Rock Company Incorporated. All companies are headquartered in Boston, Mass., and Bunker Hill provides home insurance coverage in Massachusetts and Connecticut.
The ratings of Bunker Hill reflect its balance sheet strength, which A.M. Best categorizes as very strong, as well as strong operating performance, limited business profile and appropriate enterprise risk management. The rating upgrades of the members of Bunker Hill are based on the companies’ improved risk-adjusted capitalization, predominantly a result of enhancements to the catastrophe reinsurance program and solid growth in policyholders’ surplus. Although there has been some modest weather-driven volatility, the core book of business has performed well, primarily due to underwriting discipline and rate actions, according to an A.M. Best press release.
The ratings of Plymouth Rock reflect its balance sheet strength, which A.M. Best categorizes as very strong, adequate operating performance, limited business profile and appropriate enterprise risk management.
Risk-adjusted capitalization reflects the group’s favorable loss reserve development trends and solid growth in surplus in recent years, partially offset by elevated common stock leverage.
The group’s performance reflects management’s extensive experience and expertise in the Massachusetts, Connecticut and New Hampshire automobile insurance markets. The group utilizes several innovative distribution methods to produce business and maintain market share in the competitive and challenging Massachusetts insurance market, the release stated.
The group recently entered the New York private passenger automobile market through Plymouth Rock Assurance Corporation’s acquisition of 21st Century National Insurance Company, which remains separately rated by A.M. Best with its FSR of A- (Excellent) and Long-Term ICR of a- currently under review with developing implications.
Conversely, as predominantly single state writers, Plymouth Rock and Bunker Hill remain susceptible to severe localized weather and to economic, judicial and regulatory issues, the release added.
The FSR has been upgraded to A- (Excellent) from B++ (Good) and the Long-Term ICRs have been upgraded to a-from bbb, with the outlook of the Long-Term ICRs revised to stable from positive and the outlook for the FSR maintained at stable, for the following members of the Bunker Hill Insurance Group:
- Bunker Hill Insurance Company
- Bunker Hill Insurance Casualty Company
- Bunker Hill Preferred Insurance Company
- Bunker Hill Property Insurance Company
- Bunker Hill Security Insurance Company
The FSR of A- (Excellent) and Long-Term ICRs of a- have been affirmed, all with stable outlooks, for the following members of the Plymouth Rock Assurance Group:
- Plymouth Rock Assurance Corporation
- Mt. Washington Assurance Corporation
- Pilgrim Insurance Company
Source: A.M. Best
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