AM Best has revised the outlooks to stable from negative and affirmed the financial strength rating of A+ (superior) and the long-term issuer credit ratings of “aa-” (superior) for the members of Quincy Mutual Group. The group includes the lead company, Quincy Mutual Fire Insurance Company, along with New England Mutual Insurance Company (NEMIC) and Patrons Oxford Insurance Company. Quincy Mutual and NEMIC are domiciled in Quincy, Mass., while Patrons is domiciled in Portland, Maine.
The group’s credit ratings reflect its balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The revised outlooks to stable from negative reflect the improvement in the group’s underwriting and operating performance in recent years that has resulted in metrics increasing to a level more in line with strongly assessed rating units in the private passenger standard auto and homeowners composite.
Additionally, the group has shifted its assumed reinsurance business in recent years to a more balanced allocation between property catastrophe, casualty and financial, which has contributed to improved results. Furthermore, the group has implemented numerous strategic initiatives to improve underwriting and operating performance, including sophisticated pricing models with more granular rates, as well as numerous rate adjustments.
The group’s strongest balance sheet strength is supported by its risk-adjusted capitalization being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), favorable loss reserve development, strategic reduction in common stock leverage and underwriting leverage that is considerably below the composite.
The group’s neutral business profile reflects historically profitable diversification achieved through the direct and assumed channels, as well as predictive analytics embedded within the decision-making and pricing processes. AM Best considers ERM as appropriate through utilization of a sophisticated capital model to help guide risk tolerances.
Source: AM Best
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