A.M. Best Revises Outlooks to Negative for Country-Wide Insurance Company

OLDWICK, N.J.--()--A.M. Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating of C+ (Marginal) and the Long-Term Issuer Credit Rating of “b-” of Country-Wide Insurance Company (Country-Wide) (New York, NY).

The revised outlooks are due to the company’s continued decline in risk-adjusted capitalization as a result of reserve strengthening efforts. Country-Wide’s most recent drop in surplus was driven by a considerable increase to all accident year reserves in an effort to eliminate its on-going adverse reserve development trends. In addition, Country-Wide’s underwriting and loss reserve leverage measures are well in excess of the private passenger non-standard automobile composite.

Partially offsetting these negative rating factors is the company’s substantial other income which in some years, combined with net investment income, is able to offset underwriting losses and allows the company to maintain competitive rates. Country-Wide does have a long-standing presence in its operating territory with a diverse employee force speaking 22 languages and has utilized forms in five different languages. Additionally, the company is heavily invested in technology, which streamlines underwriting and claims processes, and helps to mitigate fraud.

This press release relates to Credit Ratings 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. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

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Contacts

A.M. Best
Colette Fearon, +1-908-439-2200, ext. 5548
Financial Analyst
colette.fearon@ambest.com
or
Janet Hernandez, +1-908-439-2200, ext. 5767
Senior Financial Analyst
janet.hernandez@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
Director, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Colette Fearon, +1-908-439-2200, ext. 5548
Financial Analyst
colette.fearon@ambest.com
or
Janet Hernandez, +1-908-439-2200, ext. 5767
Senior Financial Analyst
janet.hernandez@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
Director, Public Relations
james.peavy@ambest.com