A.M. Best Upgrades Ratings of Alabama Municipal Insurance Corporation

OLDWICK, N.J.--()--A.M. Best has upgraded the financial strength rating to A- (Excellent) from B++ (Good) and the issuer credit rating to "a-" from "bbb+" of Alabama Municipal Insurance Corporation (AMIC) (Montgomery, AL). The outlook for each rating has been revised to stable from positive.

The ratings upgrade reflects AMIC's improved risk-adjusted capitalization, its favorable operating results and low underwriting leverage. AMIC’s five-year average pre-tax and total returns on revenue and equity compare favorably to the commercial casualty composite. These results are primarily due to company’s consistent net underwriting income and steady stream of investment income over the past five years. In addition, the company’s combined and operating ratios have outperformed the composite on a five-year basis. The profits from these operations have resulted in organic surplus growth, which, in turn, reduced underwriting leverage ratios and increased overall risk-adjusted capitalization.

These positive rating factors are partially offset by AMIC’s geographic concentration of risk. As a single state writer, AMIC remains exposed to catastrophic event risk, as well as regulatory, economic and judicial issues.

This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2016 by A.M. Best Rating Services, Inc. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Dan Hofmeister , +1 908-439-2200, ext. 5385
Financial Analyst
dan.hofmeister@ambest.com
or
Christopher Sharkey, +1 908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Joseph Burtone, +1 908-439-2200, ext. 5125
Assistant Vice President
joseph.burtone@ambest.com
or
Jim Peavy, +1 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Dan Hofmeister , +1 908-439-2200, ext. 5385
Financial Analyst
dan.hofmeister@ambest.com
or
Christopher Sharkey, +1 908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Joseph Burtone, +1 908-439-2200, ext. 5125
Assistant Vice President
joseph.burtone@ambest.com
or
Jim Peavy, +1 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com