OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has revised the outlook to positive from stable and affirmed the financial strength rating of B++ (Good) and the issuer credit rating of “bbb+” for The Marysville Mutual Insurance Company (Marysville Mutual) (Marysville, KS).
The positive outlook reflects the company’s strengthening risk-adjusted capitalization and consistently favorable underwriting and operating performance. The company has grown surplus in four of the past five years mainly due to profitable underwriting results complemented by a steady stream of fee and net investment income. Despite underwriting losses in 2011, the company’s five-year average combined ratio exceeds the personal property composite.
Partially offsetting these positive rating factors is Marysville Mutual’s geographic concentration, which exposes it to frequent and severe weather-related events, as well as the judicial, regulatory and economic environment. However, the company maintains a comprehensive reinsurance program to mitigate potential catastrophic losses.
Positive rating action may follow continued favorable operating performance while maintaining strong risk-adjusted capitalization. Negative rating action may occur if operating performance were to deteriorate resulting in a significant decline in risk-adjusted capitalization.
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