OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has upgraded the Financial Strength Rating to B++ (Good) from B+ (Good) and the Long-Term Issuer Credit Rating to “bbb” from “bbb-” of Forestry Mutual Insurance Company (FMIC) (Raleigh, NC). The outlook of these Credit Ratings (ratings) has been revised to stable from positive.
The ratings reflect ongoing supportive capitalization, meaningful progress and improvements in underwriting and operating results and effective loss-control practices. FMIC benefits from geographic diversification by entering markets in neighboring states, as well as the initiatives taken to restructure FMIC’s reinsurance program to reduce net loss ratio volatility. The company continues be proactive and a leader in the logging industry in loss-control training and non-renewals on unprofitable accounts, implementing a zero-tolerance policy for failure to comply with safety requirements.
Positive rating action could occur with strong operating performance that compares favorably with the industry in the near term and continued stable reserve development. Negative rating action could occur if there is a material decline in operating performance or if capitalization falls substantially short of A.M. Best expectations.
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