OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has downgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb” from “bbb+” and affirmed the Financial Strength Rating (FSR) of B++ (Good) of McMillan-Warner Mutual Insurance Company (MWM) (Marshfield, WI). The outlook of the Long-Term ICR has been revised to stable from negative, while the outlook of the FSR remains stable.
The ratings reflect MWM’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management
The rating action reflects MWM’s volatility in underwriting performance, while the change in outlook reflects the strength of risk-adjusted capitalization and strong balance sheet liquidity. Recent management initiatives such as enhanced loss control efforts and tightened underwriting standards have improved underwriting results in typical years. However, years with more weather-related catastrophe events than expected continue to influence the company’s operating performance over the longer term.
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