OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has revised the outlook to stable from negative and affirmed the financial strength rating of A+ (Superior) and the issuer credit rating of “aa-” of Greater New York Mutual Insurance Company and its three wholly owned subsidiaries: Insurance Company of Greater New York, Strathmore Insurance Company and GNY Custom Insurance Company (collectively referred to as GNY). All companies are headquartered in New York, NY.
The revised outlook reflects GNY’s improved underwriting results since 2012. GNY’s management team continues to implement strategies that have driven this improvement, including the use of increased deductibles, rate increases, reduction of exposures in catastrophe prone regions and strict inspection guidelines. Less severe weather patterns across GNY’s operating territories in recent years have also contributed to the stabilization of results.
The affirmation of GNY’s ratings reflects its excellent risk-adjusted capitalization, local market expertise and conservative balance sheet coupled with strict claims management, controls and processes.
Offsetting these strengths is the downturn in underwriting performance in 2010 and 2011 that resulted from weather-related losses and competitive market conditions. Further offsetting the strengths are the inherent risks associated with GNY’s significant concentration of business in New York and New Jersey, causing exposure to potential regulatory, legislative and competitive risks as well as weather-related events.
A favorable change to GNY’s ratings is unlikely at this time. Negative rating action may occur if there is a significant decline in GNY’s operating results or considerable deterioration in risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR).
The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
• Catastrophe Analysis in A.M. Best Ratings
• Rating Members of Insurance Groups
• Risk Management and the Rating Process for Insurance Companies
• The Treatment of Terrorism Risk in the Rating Evaluation
• Understanding BCAR for Property/Casualty Insurers
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 visit A.M. Best’s Ratings & Criteria Center.
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