OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has revised the outlook to positive from stable for the Long-Term Issuer Credit Ratings (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICRs of “bbb” of Wisconsin Reinsurance Corporation (WRC) and 1st Auto & Casualty Insurance Company (1st Auto), collectively referred to as Wisconsin Reinsurance Group (WRG) (Madison, Wisconsin). The outlook of the FSR remains stable.
The Credit Ratings (ratings) reflect WRG’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 Long-Term ICR outlook revision to positive is based on A.M. Best’s expectation that WRG will maintain its balance sheet strength through continued adequate operating performance, driven by favorable underwriting results. WRG has sustained this underwriting performance trend despite the impact from weather-related events, as it operates as a reinsurer for mutual insurance companies in the Midwest.
The rating affirmations further reflect the group’s strengthened risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR), comprehensive reinsurance program, high quality investment portfolio and generally favorable loss reserve development trends. These positive rating factors are partially offset by the group’s exposure to weather-related events and below-average operating results in its automobile book of business offered through 1st Auto, whose role is to provide direct line products to agents affiliated with companies reinsured by WRC.
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