OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has upgraded the issuer credit rating to “a+” from “a” and affirmed the financial strength rating of A (Excellent) of ICI Mutual Insurance Company, a Risk Retention Group (ICI Mutual). The outlook for all ratings is stable.
The ratings reflect ICI Mutual’s strong capitalization, favorable underwriting and operating results, and vast intellectual capital and expertise within the mutual fund industry. The company’s balance sheet is supported by its low underwriting leverage, in addition to management’s conservative reserving philosophy and proactive claims and risk management strategy.
ICI Mutual’s positive rating attributes are derived from its strategic role as a captive insurance company for the mutual fund industry as well as from the significant market penetration of its sponsor, the Investment Company Institute, which is the national trade association of U.S. investment companies whose members manage total assets of over $14.7 trillion owned by 90 million investors.
Positive rating actions could occur if ICI Mutual continues to produce strong operating profitability relative to its peer group and maintains strong risk-adjusted capital. Negative rating actions could occur if capitalization and/or operating performance fall markedly short of A.M. Best’s expectations, including a significant deterioration in loss trends. Given ICI Mutual’s narrow business scope, the ratings also are subject to any sudden shifts within its core market niche or a drastic change in its business profile.
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. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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