A.M. Best Upgrades Ratings of ECM Insurance Group Members

OLDWICK, N.J.--()--A.M. Best has upgraded the financial strength rating (FSR) to A (Excellent) from A- (Excellent) and the issuer credit rating (ICR) to “a” from “a-” of Everett Cash Mutual Insurance Company (Everett Cash Mutual) and 1st Choice Auto Insurance Company, which are members of ECM Insurance Group (ECM). The outlooks for each rating have been revised to stable from positive. In addition, A.M. Best has upgraded the ICR to “bbb+” from “bbb” and affirmed the FSR of B++ (Good) of Ever-Greene Mutual Insurance Company (Ever-Greene), an affiliate of Everett Cash Mutual. The outlook for the ICR has been revised to stable from positive while the outlook for the FSR remains stable. All companies are domiciled in Everett, PA.

The upgrade of ECM’s ratings reflects consistent above-average underwriting performance combined with increasing investment income over several years, which has increased policyholders’ surplus over the same period. The group of companies has successfully operated in the niche market of farm owners/small commercial and ancillary products for many years. ECM believes there are significant growth opportunities in this market and is slowly entering new states. These positive rating factors are partially offset by the group’s property-focused book of business that leaves it susceptible to weather-related losses. However, the group continues to maintain a comprehensive reinsurance program in an effort to mitigate the impact of weather-related losses on its profitability and capitalization.

The upgrade of Ever-Greene is indicative of its modest underwriting leverage, profitable operating performance, favorable risk-adjusted capitalization and affiliation with the group. Partially offsetting the positive factors is Ever-Greene’s limited business profile.

Positive rating action could occur if the company produces consistently above average earnings while maintaining strong risk-adjusted capitalization. The ratings may come under negative pressure if an unfavorable earnings trend develops and risk-adjusted capital deteriorates.

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
Lewis DeLosa, +1-908-439-2200, ext. 5529
Financial Analyst
lewis.delosa@ambest.com
or
Rick Decker, +1-908-439-2200, ext. 5423
Assistant Vice President
rick.decker@ambest.com
or
Christopher Sharkey, +1-908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1-908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Lewis DeLosa, +1-908-439-2200, ext. 5529
Financial Analyst
lewis.delosa@ambest.com
or
Rick Decker, +1-908-439-2200, ext. 5423
Assistant Vice President
rick.decker@ambest.com
or
Christopher Sharkey, +1-908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1-908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com