OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has upgraded the Financial Strength Rating to B++ (Good) from B (Fair) and the Long-Term Issuer Credit Rating to “bbb” from “bb+” of the members of Fire Districts Insurance Group (FDIG), which consists of Fire Districts of New York Mutual Insurance Company, Inc. and its wholly owned subsidiaries, FDM Preferred Insurance Company, Inc. and Fire Districts Insurance Company, Inc. (all domiciled in Chestnut Ridge, NY). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect FDIG’s balance sheet strength, which A.M. Best categorizes as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The ratings of FDIG were upgraded based on the group’s favorable earnings and substantial increase in policyholders’ surplus, which, in 2017, significantly improved the company’s overall balance sheet strength. A.M. Best’s view of FDIG’s balance sheet strength also considers the group’s favorable loss reserve development, the favorable outcome regarding the New York State Volunteer Firefighter Enhanced Cancer Disability Benefits Act (SB 1411) in 2017, and the resulting enhancement in risk-adjusted capitalization.
The ratings also take into consideration the group’s high level of reinsurance dependence and its limited business profile whose sole line of business is providing workers’ compensation coverage to volunteer firefighters in New York. As single state, monoline insurer, FDIG is subject to regulatory and legislative pressures, as well as the high cost of operating in the state. FDIG benefits from its long standing, local market presence and expertise in the narrow market that it has served since its formation in 1978.
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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