A.M. Best Co. has upgraded the issuer credit ratings (ICR) to
“bbb+” from “bbb” and affirmed the financial strength rating of B++
(Good) of Wisconsin County Mutual Insurance Corporation and its
fully reinsured subsidiary, Community Insurance Corporation (CIC).
These companies are members of Wisconsin County Mutual Group
(WCMG) and are all domiciled in Madison, WI. The outlook for all
ratings remains stable.
The upgrade of the ICRs reflects WCMG’s strong risk-adjusted
capitalization, expertise within the Wisconsin municipal risk management
market and improved operating and underwriting performance. The ratings
also reflect WCMG’s improved performance as a result of its commitment
to loss control and risk management services. In addition, WCMG
continues to maintain a well-established market presence among Wisconsin
counties and municipalities.
Partially offsetting these positive factors are the group's elevated
expense ratio, historical trends of variable underwriting results and
modest business profile.
Prospectively, future positive rating actions may result if WCMG’s
operating results continue to demonstrate profitable trends while
maintaining solid risk-adjusted capitalization, particularly as CIC
reenters the workers’ compensation market in its niche market.
Conversely, if operating performance declines to unprofitable levels as
demonstrated in historical periods, negative rating pressure may occur.
The methodology used in determining these ratings is Best’s Credit
Rating Methodology, which provides a
comprehensive explanation of A.M. Best’s rating process and contains the
different rating criteria employed in the rating process. Key criteria
utilized include: “Risk Management and the Rating Process for Insurance
Companies”; “Understanding BCAR for Property/Casualty Insurers”; and
“Rating Members of Insurance Groups.” Best’s Credit Rating Methodology
can be found at www.ambest.com/ratings/methodology.
Founded in 1899, A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS