OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has removed from under review with negative implications and downgraded the Financial Strength Rating (FSR) to B++ (Good) from A- (Excellent) and the Long-Term ICR (Long-Term ICR) to “bbb+” from “a-” of West Virginia Mutual Insurance Company (WVMIC) (Charleston, WV). The outlook assigned to the FSR is stable, while the outlook assigned to the Long-Term ICR is negative. Concurrently, A.M. Best has withdrawn the ratings as the company has requested to no longer participate in A.M. Best’s interactive rating process.
The ratings were placed under review with negative implications in October 2017, in conjunction with the release of the updated Best’s Credit Rating Methodology (BCRM). The ratings have been removed from under review, as A.M. Best has completed its analysis of WVMIC under the updated BCRM.
The ratings reflect WVMIC’s balance sheet strength, which A.M. Best categorizes as strongest, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management.
The rating actions reflect the continued weakness in the company’s underwriting and operating results, and the continued challenges given competitive market conditions and the dynamics within the medical professional liability (MPL) segment. WVMIC’s operating and underwriting performance has suffered as a result of prolonged soft market in the MPL segment, and an increase in severity, partly attributable to death claims. In addition, reserve redundancies on prior accident years have lessened, and investment income growth remains under pressure due to prolonged low interest rates.
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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