OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Bear River Mutual Insurance Company (Bear River Mutual) (Murray, UT).
The Credit Ratings (ratings) reflect Bear River Mutual’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The stable outlooks reflect Bear River Mutual’s recently improved underwriting results, operating performance, and risk-adjusted capitalization, driven by management’s numerous strategic initiatives. These initiatives include an aggressive multi-year profit improvement plan that focuses on tightened underwriting guidelines, and rate level adequacy relative to current and projected loss experience. This more sophisticated rate level process has been developed through Bear River Mutual’s new rating model that provides the pricing precision needed to more accurately assess its risk exposure and characteristics. According to management, Bear River Mutual’s enhanced rating framework is expected to help return its operating results to historical levels.
Bear River Mutual has a limited business profile with a geographic concentration in Utah, which exposes its operating performance and capitalization to potential losses from earthquakes, weather-related events, competitive market conditions, and changes in the legislative and regulatory environments. However, Bear River Mutual maintains a comprehensive reinsurance program, which largely mitigates this exposure.
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